Final Initial Environmental Examination

Project Number: 52339-001 December 2020

Proposed Loan : Modern Skills for Better Jobs Sector Development Program

Prepared by the Government of Georgia for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 25 November 2020)

Currency unit – lari (GEL)

GEL1.00 = €0.26251 or $0.30966 $1.00 = GEL3.0785 or €0.84832 €1.00 = GEL3.80940 or $1.17960

ABBREVIATIONS

ADB – Asian Development Bank ACM – asbestos-containing materials CBTE – competency-based training and assessment COVID-19 – coronavirus disease CSOs – civil society organizations EAC – Environmental Assessment Code EIA – environmental impact assessment EHS – environmental, health and safety EMF – electromagnetic field

EMP – environmental management plan EMS – environmental management system GDP – gross domestic product GFP – grievance focal person GoG – Government of Georgia GRM – grievance redress mechanism GRCE – grievance redress committee GRCN – grievance redress commission ICNIRP – International Commission on Non-Ionizing Radiation Protection ICT – information and communications technology IEE – initial environmental examination IFC – International Finance Corporation IGA – income-generation activity IMF – International Monetary Fund IUCN – International Union for Conservation of Nature MOEPA – Ministry of Environmental Protection and Agriculture MOESCS – Ministry of Education, Science, Culture and Sport MOESD – Ministry of Economy and Sustainable Development MOF – Ministry of Finance MOIDPLHSA – Ministry of Internally Displaced Persons from the occupied territories, Labor, Health and Social Affairs MRDI – Ministry of Regional Development and Infrastructure NBSAP – National Biodiversity Strategy and Action Plan NCEQE – National Center for Education Quality Enhancement NEETs – not in education, employment or training NGOs – non-governmental organizations NQF – national qualifications framework

PIU – project implementation unit PPP – public–private partnership PSC – program steering committee REA – rapid environmental assessment SFF – State Forest Fund SPS – Safeguard Policy Statement SSEMPs – site-specific environmental management plans SSOs – sector skills organizations TA – technical assistance VET – vocational education and training WBL – work-based learning

WEIGHTS AND MEASURES

dbA – Decibel Hz – Hertz Kg – Kilogram Mg – Milligram Mm – Millimeter

NOTE

(i) In this report, “$” refers to United States dollars.

This Final Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page EXECUTIVE SUMMARY I. INTRODUCTION 1 A. Project Background 1 B. Project Objective 4 C. Environmental Category of the Project 5 D. Methodology of IEE Report 5 E. Project Proponent 6 F. Structure of the Report 7 G. Limitations to IEE study and Further Updating 7 II. POLICY AND LEGAL FRAMEWORK 8 A. General 8 B. Statutory Framework 8 C. Legal and Administrative Framework 8 D. Environmental Regulations and Standards 19 E. ADB Requirements 26 F. IFC Performance Standards 28 G. Equator Principles 29 H. International Conventions and Agreements 29 I. Comparison of ADB and National Requirements 32 III. PROJECT DESCRIPTION 34 A. Project Overview 34 B. Project Need 39 C. Scope of Work 40 D. Implementation Arrangements 48 E. Project Cost 51 F. Project Benefits 54 G. Project Physical Activities 54 IV. ANALYSIS OF ALTERNATIVES 56 A. Overview 56 B. No project Option 56 C. Site and Design Alternatives 56 V. DESCRIPTION OF THE ENVIRONMENT 57 A. General 57 B. Administrative Division of the Regions and Location of Selected Sites 57 C. Physical Environment 58 VI. ANTICIPATED IMPACTS AND MITIGATION MEASURES 96 A. Impact Assessment Process 96 B. Notion of Significance 96 C. Methodology for Impact assessment 96 D. Positive Impacts 96 E. Potential negative impacts at the pre-construction phase 96 F. Potential negative impacts at the construction phase 98 G. Potential negative impacts at the operational phase 104 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 107 A. National Regulations 107 B. International Regulations 108 C. Public Consultations in the Frame of the Project 108 D. Disclosure Requirement and Procedures 114 VIII. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 115 A. Introduction 115 B. Objectives of EMP 115 C. Responsibilities for the EMP Implementation 115

D. Site Specific Environmental Plans 115 E. Health & Safety Management Framework 131 F. Environmental Monitoring 132 G. Reporting 132 H. Environmental Management Costs 132 IX. PROJECT GRIEVANCE REDRESS MECHANISM 134 A. Introduction 134 B. GRM, Grievance Redress Committee and Grievance Focal Persons 134 C. Project Grievance Redressed Process 136 X. CONCLUSIONS AND RECOMMENDATIONS 139 A. Conclusion 139 B. Recommendations 140 ANNEX 1: ATTENDANCE FORMS OF THE PARTICIPANTS 141 ANNEX 2. DESIGNED LAYOUTS OF THE SKILLS HUBS 147 ANNEX 3: ENVIRONMENTAL MONITORING PLAN 151 ANNEX 4: RAPID ENVIRONMENTAL ASSESSMENT (REA) CHECKLIST 154 ANNEX 5: COVID-19 MANAGEMENT PLAN 155 ANNEX 6: PHOTOS FROM THE CONSULTATION MEETINGS 160 ANNEX 7: PHOTOS OF THE SELECTED SITES 163

I. LIST OF FIGURES

Figure 1: Locations of VET Secondary Schools Figure 2: Program Organization Structure Figure 3: Geological Map of Georgia Figure 4. Soils Distribution Figure 5: Climate Zones Figure 6: Precipitation Figure 7: River Basins of Georgia Figure 8: Seismic Hazards Assessment by Regions Figure 9: The Map of Protected Areas of Georgia

II. LIST OF TABLES

Table 1: Summary Program Impact, Effect of the Reform and Reform Areas Table 2: List of Environmental Laws and Regulations Relevant to the Project Table 3: List of Social and Land Ownership Related Laws Relevant to the Project Table 4: Ambient Air Quality Standards Table 5: Surface Water Quality Requirements by Water Use Category Table 6: Drinking Water Quality Criteria Table 7: Indicative Values for Treated Sanitary Sewage Discharges Table 8: Georgian Standards for Noise Levels Table 9: IFC Work Environment Noise limits Table 10: Georgian General Admissible Vibration Values in Residential Houses, Hospitals and Rest Houses, Sanitary Norms 2001 Table 11: Guideline Values for Vibration Velocity to be Used When Evaluating the Effects of Short-term and Long-term Vibration on Structures Table 12: Soil Screening Values Table 13. ICNIRP Exposure Limits for General Public Exposure to Electric and Magnetic Fields Table 14. ICNIRP Exposure Limits for Occupational Exposure to Electric and Magnetic Fields Table 15: International Agreements and Treaties Table 16: Comparison of ADB and GoG Legislation Requirements Table 17: Skills Hubs: Locations, Partners and Sectors Table 18: Proposed Programs for Skills Hubs Table 19: Proposed Project Schools Table 20: Proposed Programs for VET Schools Table 21: Summary of Proposed Programs and Civil Works Table 22: List of Goods and Estimated Values Table 23: Implementation Arrangements Table 24: Project Investment Plan Table 25: Summary Financing Plan Table 26: Cost Breakdown Table 27: List of Protected Areas in Selected Region Table 28: Household Distribution by Main Sources of Drinking Water Table 29: Results of Noise Level Measurement Table 30: IFC Noise Level Guidlines Table 31: Construction Equipment Noise Emission Levels Table 32: Results of Ambient Air Measurement Table 33: Results of Chemical and Microbiological Examinations - Water Sample from Sighnaghi Municipality Tsnori Public School #1

Table 34: Results of Chemical and Microbiological Examinations - Water Sample from Samtredia Public School #1 Table 35: Results of Chemical and Microbiological Examinations - Water Sample from Kareli Public School #1 Table 36: Results of Chemical and Microbiological Examinations - Water Sample from Municipality Village Mukhrani Public School Table 37: Results of Chemical and Microbiological Examinations - Water Sample from Levan Devdariani Gardabani Public School Table 38: Sensitive Receptors along the Project Sites Table 39: List of People Attended Consultation Meetings Table 40: Summary of the Discussion with the Stakeholders Table 41: Environmental Management Plan Table 42: Environmental Management Cost

EXECUTIVE SUMMARY

I. INTRODUCTION

1. The Government of Georgia (GoG) has declared human capital development as one of the pillars for economic and social development1. Vocational education and training (VET) is the responsibility of the Ministry of Education, Science, Culture and Sport of Georgia (MOESCS). Public VET colleges are eligible for all five types of funding, while private colleges are eligible for voucher funding for short and long-term programs in priority sectors. The VET sector is regulated by the Law of Georgia on Vocational Education 20182 and Law on Education Quality.3 In 2019, there were 90 VET institutes (52 private and 38 public), including 66 vocational colleges, 8 general education schools and 16 higher education institutions delivering long-term VET programs. Private VET institutes represent almost 60.0% of all institutes. Most of these are located in cities where the socio-economic status of potential students is higher as people can afford to pay tuition fees.4 In 2018-2019, 11,853 students (66% in public and 34% in private sector) were enrolled in VET. This is less than 3% of the youth cohort (15-24-year olds).

2. Since 2003, the GoG has reformed VET, with a focus on upgrading facilities, better matching of skills provision with labor market needs, facilitating private sector participation, and increasing access to vulnerable groups. More recently, the GoG adopted a new VET law, revised national qualifications framework (NQF), strengthened VET quality assurance, and expanded the network of public VET providers, including through public-private partnerships (PPPs). Despite these efforts, the contribution of the VET sector to economic and social development has not lived up to its potential. VET sector challenges can be grouped into three areas: (i) poor quality and relevance of the training; (ii) limited access to, and participation in, VET; and (iii) weak institutional framework for VET.

3. The project is aligned with the GoG’s key economic strategies: (i) Georgia 2020, the country’s overarching socio-economic strategy, identifies enhancing skills as a key socio- economic development goal; 5 (ii) the Government Programme 2019−2020 identifies education and economic growth as priority reform areas; 6 and (iii), the Regional Development Programme of Georgia (2018−2021) prioritizes human resource development.7 The project supports the GoG efforts to transform the vocational education and training (VET) sector. The program is aligned with the following impact: inclusive economic growth strengthened.8 It will result in the following outcome: a responsive VET network promoting excellence in skills development strengthened. Proposed program reform areas are: (i) quality and relevance of VET in priority economic sectors improved; (ii) access to, and inclusiveness of, the VET system increased; and (iii) institutional framework strengthened through increased private participation in VET.9

1 Government of Georgia. Freedom, Rapid Development, Prosperity: Government Platform 2016-2020. . 2 . 2018. Law of Georgia on Vocational Education. Tbilisi. 3 Parliament of Georgia. 2010. Law on Georgia on Education Quality. Tbilisi. 4 VET is mostly publicly funded in Georgia. Until 2019, only institutes established by the state or with state participation were eligible for state funding. Now private VET institutes are eligible for state funding for programs in priority skills areas. 5 GoG. 2014. Socio-economic Development Strategy of Georgia “GEORGIA 2020.” Tbilisi. 6 GoG. 2019. Government Program 2019−2020. Tbilisi. 7 GoG. 2018. Regional Development Programme of Georgia 2018−2021. Tbilisi. 8 GoG. 2014. Socio-Economic Development Strategy: Georgia 2020. Tbilisi. 9 The design and monitoring framework is in Appendix 1 of the Report and Recommendation of the President.

4. The project will be implemented from 2021 to 2026 (6 years). An inter-agency program steering committee (PSC) will be established to guide the executing agency and monitor overall project performance and outcome.

5. A consolidated initial environmental examination (IEE) is being prepared in accordance with the ADB’s Safeguard Policy Statement (2009). General environmental management plan (EMP), as part of IEE is designed to avoid and compensate the adverse environmental impacts that may result from the project works and considers phases of the project cycle. The program is expected to have temporary and site-specific adverse impacts on the environment. IEE provides an overview of the environmental monitoring and includes the timeframe and responsibilities for carrying out the monitoring process and describes Grievance Redress Mechanism procedure, results of public consultation and participation process. Once approved, the plan will be publicly disclosed. The IEE was conducted amid the coronavirus disease (COVID-19) and tasks such as Stakeholders Consultations and Baseline Environmental Monitoring was limited as per normal procedures. For consultations, site visits and phone calls were used; baseline monitoring data was obtained from site visits as well as extracted from secondary sources i.e., other IEE reports and research papers.

II. POLICY AND LEGAL FRAMEWORK

6. Georgian legislation comprises the Constitution of Georgia, environmental laws, international agreements, subordinate legislation, normative acts, presidential orders and governmental decrees, ministerial orders, instructions, and regulations. Along with the national regulations, Georgia is signatory of several international conventions, including those related to environmental protection. The Ministry of Environmental Protection and Agriculture of Georgia (MOEPA) is responsible for regulating the activities that affect the natural environment. The key environmental laws affecting the project are discussed below. The IEE report has been prepared keeping in view the following national policies, laws, regulations, and guidelines:

(i) Constitution of Georgia, 1995 (ii) Law on Environmental Protection, 1996 (iii) Environmental Assessment Code, 2017 (iv) Third National Environmental Action Program of Georgia (v) Law on Licenses and Permits, 2005 (vi) Law of Georgia on Subsoil, 1996 (vii) The Waste Management Code, 2015 (viii) Law on Protection of Atmospheric Air, 1999 (ix) Forest Code of Georgia (1999). (x) Law on Water,1997 (xi) Law on Wildlife,1997 (xii) Law on Red List and Red Book, 2003 (xiii) Law on Soil Protection, 1994 (xiv) Law on System of Protected Areas, 1996 (xv) Law on Compensation for Damage Caused by Hazardous Substances,1999 (xvi) Civil Code of Georgia,1997 (xvii) Labor Code of Georgia, 2010 (xviii) Law on Public Health, 2007 (xix) Law on Compensation of Land Substitute Costs and Damages,1997 (xx) Law on Agricultural Land Ownership,1996 (xxi) Law on Rules for Expropriation of Property for Public Needs, 1999 (xxii) Law on State Property, 2010 (xxiii) Law on Labor Safety, 2018 (xxiv) Law on Cultural Heritage, 2007 (xxv) Law on Spatial Development and Basis for City-building, 2005

(xxvi) ADB’s Safeguard Policy Statement, 2009 (xxvii) ADB’s Access to Information Policy, 2018 (xxviii) ADB’s Accountability Mechanism Policy 2012 (xxix) United Nation’s Sustainable Development Goals (xxx) IFC Performance Standards (xxxi) Equator Principles (xxxii) IUCN Red List (xxxiii) The Rio Declaration, 1992 (xxxiv) Kyoto Protocol (xxxv) Convention on Biological Diversity, 1992 (xxxvi) Occupational Safety and Health Convention,1981 (xxxvii) Ramsar Convention on Wetlands of International Importance Especially as Wildfowl Habitat, 1971 (xxxviii) Convention on the Conservation of Migratory Species of Wild Animals (Bonn Convention), 1983 (xxxix) Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, 1989 (xl) UN Framework Convention on Climate Change, 1994 (xli) European Cultural Convention, 1954 (xlii) Paris Convention Concerning the Protection of the World Cultural and Natural Heritage, 1972 (xliii) Council of Europe Framework Convention on the Value of Cultural Heritage for Society (Faro convention), 2005 (xliv) Aarhus Convention on Access to Information, Public Participation in Decision‐ Making, and Access to Justice in Environmental Matters, 1998 (xlv) ILO Social Policy (Basic Aims and Standards) Convention, 1962 (xlvi) European Convention for the Protection of Human Rights and Fundamental Freedoms, 1950.

III. DESCRIPTION OF THE PROJECT

7. The Modern Skills for Better Jobs Sector Development Program (the program) has three main areas of implementation i.e.,

(i) Reform area 1: Quality and relevance of VET in priority economic sectors improved. The reforms under this area will improve the quality and relevance of VET through better programs and diversification of revenues. Subprogram 1 policy actions include (i) development of a concept for the governance framework for skills hubs, which aims at strengthening links with international education and industry partners in adopting corporate principles to improve responsiveness and institutional efficiency; (ii) augmented voucher program, to include a 30% rise in remuneration for VET teachers to recruit and retain qualified teachers; (iii) increase in VET budget by about 23% starting from January 2020; 10 (iv) approval of a revised NQF; and (v) approval of VET authorization standards and procedures. Subprogram 2 policy actions involve (i) approval of the governance framework for skills hubs (concept developed in subprogram 1); (ii) approval of a regulatory framework for VET teachers’ competencies, induction, and in-service professional development; (iii) approval of revised entrepreneurship modules, as part of a national VET standard in line with the European Entrepreneurship

10 The increase was to upscale the VET programs (all the budget components, including expansion of voucher program, institutional and targeted programs, and training programs).

Competence Framework; and (iv) adoption of a regulation for a revised VET funding framework, including the introduction of performance-based funding for VET institutes.

The project component will finance the establishment of two innovative skills hubs in existing VET institutes in Kutaisi and Telavi to deliver high-quality and relevant training in seven priority economic sectors. 11 The skills hubs will display sector leadership and innovation, develop national and international links, and support other VET institutes. The program will finance improved gender-sensitive facilities; updated equipment; training in entrepreneurship, languages, and soft skills; student placement services; capacity building; and support for income-generating activities. The hub locations were chosen based on (i) their proximity to economic growth nodes, (ii) alignment of programs with priority economic sectors, (iii) government priorities, and (iv) the condition of facilities and equipment. Skills hubs will have increased public and private funding. The program will develop new or revise existing competency-based training and assessment (CBTA) programs at NQF levels 4 and 5. The program steering committee will be able to propose changes to the prioritization of economic sectors and VET programs to reflect changes in economic circumstances or government priorities. The project will also support the introduction of income-generating activities in skills hubs.

(ii) Reform area 2: Access to, and inclusiveness of, VET system increased. This reform area will increase access to VET and expand its scope to earlier levels of education. The subprogram 1 policy actions involve approving (i) a new regulatory framework for adult education, including program development, eligibility to deliver programs, and rules for student enrollments; (ii) VET enrollment rules and procedures for youth and vulnerable groups supported by a more equitable funding scheme; and (iii) revised rules and procedures for the recognition of nonformal learning. Subprogram 2 policy actions include (i) further expansion of VET delivery in secondary schools; and (ii) development of a VET gender equality policy, and guidelines and approval of a 5-year action plan in 2022 to put this policy into effect.

The project component will support the introduction of VET in 20 secondary schools to deliver CBTA VET programs at NQF levels 3 and 4 in priority economic sectors, by upgrading facilities, providing equipment, supporting curriculum development, and building capacity. It will also (i) formulate a VET gender policy and guidelines, (ii) undertake social marketing of VET, and (iii) establish a career guidance and counseling system.

(iii) Reform area 3: Institutional framework strengthened through increased private participation in VET. These reforms will strengthen the VET institutional framework by taking measures to increase private participation in the system. Subprogram 1 policy actions include (i) approval of MOESCS regulations on the transfer of responsibility for the development of occupational standards and the coordination of WBL with industry-led SSOs; (ii) piloting a VET PPP by authorizing collaboration with a private construction company and a privately operated college in Western Georgia, to offer VET programs in construction; and (iii) extended eligibility for the government

11 Priority economic sectors are (i) electronic engineering, (ii) information and communication technology, (iii) medical and pharmaceutical production, (iv) fashion and design, (v) water engineering, (vi) furniture production and carpentry, and (vii) services (hospitality and tourism).

voucher program to private VET providers for some students enrolled in priority programs. Subprogram 2 policy actions include (i) approval of a policy on occupational standards and coordination of WBL with industry-led SSOs; (ii) creation of a skills authority with (a) responsibility for VET system governance, (b) a charter providing for private sector and government participation in decision-making, and (c) 50% female representation on its board; (ii) approval of occupational standards developed by SSOs and (iii) approval of the PPP program documents for at least one additional VET PPP transaction (baseline: 3).

The project component will establish SSOs in seven priority economic sectors, responsible for the development of occupational standards and WBL in VET. The government will (i) encourage private participation in SSOs, (ii) finance specialized training in priority economic sectors, and (iii) pilot an innovative model of privately managed VET programs.

8. The program will be implemented from 2021 to 2026 (6 years). An inter-agency program steering committee (PSC) will be established to guide the executing agency and monitor overall project performance and outcome. The PSC will be chaired by the MOESCS deputy minister and will be composed of representatives from various ministries and agencies, as well as the project implementation unit (PIU) director and private sector representatives. The PSC will (i) provide guidance on overall project implementation and in identification of investment activities based on prioritized targets; (ii) ensure coordination with relevant government agencies and stakeholders; and (iii) monitor the achievement of project outcomes.

IV. ANALYSIS OF ALTERNATIVES

9. Different alternatives considered for the project include the no project option, site and design alternatives. Development of VET sector is one of the important priorities of the GoG. The non-implementation of the project will be a serious risk for the development of the sector and there will be no positive outcomes. Selection of alternative sites represents the risk of lower project performance with respect to the agreed objectives and relevant selected criteria. Design options selected based on the given criteria are the most suitable.

V. DESCRIPTION OF ENVIRONMENT

10. The project covers almost all regions of Georgia. The project pre-selected sites are in urban areas, mainly in administrative centers or towns of the regions and only a small number of sites are situated in rural areas. The project activities will be implement in the town of Keda, in the mountainous part of ; in the city of Chiatura and in the towns of Vani, Khoni, Samtredia, Terjola, Sachkhere and Kharagauli in Region; in the town of Tsnori of Sighnaghi Municipality and in the village Duisi of Akhmeta Municipality in region; in Talaveri village of Municipality and in the town of Gardabani in Kvemo Region; located in the village Mukhrani of in Mtskheta-Mtianeti Region; in the town of Oni in - and Kvemo Region; in the towns of , Chkhorotsku and Tsalenjikha in Samegrelo-Zemo Svaneti Region; in the town of Vale of Akhaltsikhe Municipality and in the town of Aspindza in Samtskhe- Region; and in the town of Kareli in Region.

11. Georgia is located at the junction of Europe and Asia, in Caucasus Region, in the belt of Alpine folds in Eurasia. The country is surrounded by the Greater Caucasus Range to the north and the Lesser Caucasus Mountains to the south, which are connected by Surami and Imereti ranges. Most of the country’s territory is built of Mesozoic and Cenozoic formations. Older Cambrian and Paleozoic formations are less represented.

12. Georgia is distinguished by the variability of soil covers. The soil is one of main resource in Georgia and has significant importance for the development of agriculture.

13. Georgia is characterized by climate diversity, considering the overall size of the country. Almost all climates of the earth’s surface are spread in the country, ranging from the humid climate of coast and dry subtropics of eastern Georgia to the alpine climate of Caucasian Mountains.

14. Georgia is very rich in water resources, rivers, lakes, meadows, swamps, and groundwater. Rivers of Georgia belong to the Black Sea and Caspian Sea basins.

15. Georgia belongs to the complex region with a diverse spectrum of natural processes. Large percentage of landslides and ravines comes to agricultural land and urban areas.

16. Georgia is rich in various types of ecosystems, habitats, and associated species. The country’s biodiversity provides life-sustaining services.

17. Biodiversity of the country is rich to the large variety in topography and climate, and related biomes—broadleaf, coniferous, mixed and floodplain forests; sub-alpine and alpine grasslands; bare rocks, subnival and nival biomes; steppe and semi-deserts.

18. Forests are especially valuable natural resources in Georgia, which cover more than 40% of the country’s territory, having great importance at national, regional and global levels. Forest in Georgia conserves the biological diversity and ensures delivery of vital direct and indirect resources and benefits to the population.

19. In recent decades, robust work of the GoG has resulted in a significant expansion of the Protected Area (PA) network, through establishing new PAs and enlarging existing ones.

20. Georgia has a rich cultural heritage, with an abundance of archeological sites, natural monuments, PAs, mineral water, balneology, seaside, and mountain ski resorts.

VI. POTENTIAL ENVIRONMENTAL IMPACTS & MITIGATION MEASURES

21. As the first step, the screening of the subprojects was conducted using the ADB’s rapid environment assessment (REA) checklist. The construction and rehabilitation work in the pre-selected project sites fell under Category B as per ADB Safeguard Policy Statement (2009) and so require IEE study.

22. The project has several positive impacts from generating a large and skilled workforce to upgrading project pre-selected sites into quality institutes. The impact would be positive as need based trainings will create job opportunities and workforce readiness for local and global markets.

23. The negative impacts are site specific and mainly will be generated during construction phase and some of them during the operational phase. IEE inclusion in contractors bidding documents and preparation of contractor’s site-specific environmental management plans (SSEMPs) (would be a challenge that can be addressed through collaboration with the design team). During construction, emissions from construction activities, wastes from camps, impact on air quality, direct and indirect impacts on flora and fauna species and their habitat, load on sanitation, drinking water, exploitation traffic congestion, higher noise levels, land contamination, vibrations, occupational health and safety, public health and safety. These impacts can be controlled through implementation of

management plans and stringent monitoring for implementation of SSEMPs and compliance check. During operation, major impacts will be noise and vibration from equipment, health and safety issues, etc. The impacts can be reduced through improved designs and safety management.

VII. STAKEHOLDERS CONSULTATION AND INFORMATION DISCLOSURE

24. Due to the COVID-19 pandemic, a mixed approach was used for the consultation meetings. Despite of strict restrictions on large public gatherings caused by COVID-19 pandemic, the Technical Assistance (TA) team managed to meet with stakeholders in the field by taking into account and adhering to all international and national standards and requirements set for preventing the spread of the virus. Part of the meetings were conducted online. Consultation process was carried out between June and December 2020. The representatives of the selected VET institutions, local authority and local community members and other relevant stakeholders attended the meetings.

25. The project executing agency MOESCS will disclose this IEE and EMP to all the stakeholders before the commencement of the proposed project. The IEE report will be made available to the stakeholders in line with the Georgian legislation. The IEE report will also be disclosed on the ADB website in December 2020.

VIII. GRIEVANCE REDRESS MECHANISM

26. The grievance redress mechanism (GRM) consists of project-specific systems established at the municipal level and regular system established at the PIU. The grievance redress committee (GRCE) will be established at the municipal level as a project-specific instrument, functional for the whole period of the project implementation. The grievance redress commission (GRCN) will be formed as an informal structure within the PIU to ensure grievance review, resolution, and record.

27. The GRM in the project will be a means for the PIU in the MOESCS to be aware of and respond to stakeholders’ concerns related to the project in a timely manner. The GRM process or procedure will be established to receive and facilitate resolution of stakeholders’ concerns and grievances pertaining to the contractor’s environmental and social performance. Based on the guidelines of several funding institutions including ADB, the GRM will be designed to meet the needs of the project as well as conform to existing local guidelines.

28. During the actual operationalization of the GRM, the process and communication flows will be centered with GRM coordinator. The GRM coordinator will take initiative to be observant of any issue and will try to obtain information which will be used at the subsequent GRM process stages.

IX. CONCLUSIONS AND RECOMMENDATIONS

29. Implementation of the proposed project activities is critically important for the VET sector development in the country. Field observation results and secondary sources of information have been used for the assessment of environmental impacts of the project activities.

30. The IEE report highlight potential environmental impacts associated with the development of project pre-selected sites and recommends mitigation measures for each project implementation phase. All environmental impacts need to be mitigated according to the EMP and institutional arrangements described in the report.

31. Conducted study reveals that the expected environmental impacts have the site- specific and temporary character and are mainly confined with construction activities and some of them with operational phase, which are predictable and manageable. Possible negative impacts can be minimized or avoided by implementation of mitigation measures and the monitoring. The examination showed that the construction and renovation of workshops, classrooms, and utilities under the program will have site-specific temporary environmental impacts, including air and water pollution, noise, waste, and occupational and community health and safety. A generic environmental management plan and its mitigation and monitoring programs will be part of the bidding documents for civil works.

32. The project has been assigned environmental category B, in accordance with the ADB Safeguard Policy Statement. IEE report with the EMP is considered as sufficient environmental assessment of the project and a full environmental impact assessment (EIA) is not required.

I. INTRODUCTION

A. Project Background

1. Economic context. Georgia enjoyed a 4.7% average annual rate of gross domestic product (GDP) growth and kept its annual fiscal deficit equal to about 1.0% of GDP during 2011−2019.12 It halved its poverty rate from 38.8% in 2007 to 20.1% in 2018. GDP grew by 5.1% in 2019 but is expected to fall by 5.0% in 2020 because of the coronavirus disease (COVID-19).13 It is also estimated that, because of COVID-19, the unemployment rate could increase from 11.6% in 2019 to 31.5% in 2020. Restrictions on economic activity across almost all industries14 put many people at risk, either by downward adjustments to income or working hours, or by losing their jobs. A preliminary estimate suggests that, in 2020, roughly 385,000 people or about 23.4% of the employed face a high risk of job displacement.15 As a response to the sharp increase in the fiscal deficit in 2020, the authorities adopted a medium-term plan to gradually bring the fiscal deficit to 3% by 2023.16 The ratio of public debt to GDP stood at 44.5% in 2019. The International Monetary Fund (IMF) assessed public debt as remaining at sustainable levels over the medium term.17

2. Labor market context. The population has declined considerably since 1990 and is expected to continue doing so because of low birth rates and continued net emigration, the latter because of a lack of well-paying jobs in the country. For now, employment in low- productivity agriculture remains relatively high. 18 Agriculture accounts for almost half of employment but contributes less than 10% to GDP. Most labor resources are locked in low- productivity jobs that require low-level skills. Future economic growth supported by technological advancement and global market demands will therefore require (i) efforts to improve the skills of the workforce to increase productivity and employment, and (ii) measures to boost growth in emerging and high-demand industries. And while the overall unemployment rate has fallen considerably—from 17.2% in 2012 to 11.6% in 2019—thanks to improvements in the country’s business environment, youth unemployment is at 30.4%,19 and the share of 15–29-year-olds who are not in employment, education, or training is 30.6%.20 Young women are more likely to be in this group than young men.21

3. VET sector context. VET is part of the education sector22 and comprises basic, secondary, and higher vocational education; associate degree programs; and short-term training and retraining courses. Students generally enter VET after grade 9 or grade 12. Most are enrolled in formal, institute-based VET programs at lower levels of the national

12 International Monetary Fund (IMF). Georgia Country Data (accessed 24 August 2020). 13 Asian Development Bank (ADB). Economic Indicators for Georgia. 14 The tourism sector, which contributed 11.6% of GDP in 2019, was severely hit by travel restrictions and recorded a 58.6% decline in international visitor trips in March 2020, year on year. 15 L. Pavlenishvili et al. 2020. The Social Impacts of COVID-19—Case for a Universal Support Scheme? Tbilisi: International School of Economics at TSU Policy Institute. 16 Ministry of Finance of Georgia. 2020. Basic Economic and Financial Indicators (baseline scenario). Annexed to State Budget 2020 (post-COVID-19 version). 17 IMF. 2020. Georgia: Sixth Review under the Extended Arrangement and Requests for a Waiver of Nonobservance of Performance Criterion, Modification of Performance Criteria, and Augmentation of Access- Press Release; Staff Report; and Statement by the Executive Director for Georgia. IMF Country Report. No. 20/149. Washington, DC. 18 IMF. 2019. Georgia: Selected Issues. Washington, DC. 19 Government of Georgia, National Statistics Office. 2020. Distribution of Population by Economic Status and Age Groups. Tbilisi. 20 Government of Georgia, National Statistics Office. 2020. Labour Force Statistics. Tbilisi. 21 R. Li et al. 2019. OECD Reviews of Evaluation and Assessment in Education: Georgia. Paris: Organisation for Economic Co-operation and Development (OECD). 22 Technical and Vocational Education and Training (TVET) is a subsector of the education sector. Some ADB developing member countries officially call this subsector as TVET, while others including Georgia use VET.

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qualifications framework (NQF). VET provision also includes government-sponsored training and retraining for adults. In 2019, some 90 VET institutes delivered formal programs to more than 11,850 enrollees.23 VET enrollments have fallen by 27.0% since 2017, because of the introduction of longer-term CBTA programs. Private VET institutes play an important role in Georgia, representing almost 60.0% of all VET providers, although only 33.9% of total VET enrollments. They are largely funded by tuition fees and are concentrated in Tbilisi and other urban centers where people can afford to pay the tuition fees. Since 2019, however, they have been receiving government funding for students enrolled in programs covering priority fields.

4. In public VET institutes, almost one-third of students are enrolled in engineering (36%), followed by business administration (14%), services (13%), and information and communication technology (10%). In private VET institutes, 39% are enrolled in health- related programs (including pharmaceuticals), followed by business administration (17%) and engineering (11%). The gender distribution of enrollments reflects the program offerings of public and private VET institutes. In 2019, 62% of private enrollees were women, while only 41% of public enrollees were women. In 2019, VET institutes cumulatively employed about 5,300 teachers, 72% of them women. Female teachers have higher qualifications than male ones.

5. VET is largely publicly funded. During 2017−2020, state spending on VET increased from GEL37.8 million to GEL66.5 million, in line with the government’s intention to boost spending on education from 3.8% to 6.0% of GDP by 2022.24 VET spending increased across all categories: voucher programs, institutional and targeted programs, training and retraining programs, and capital investment. State spending on VET represents 4.9% of the government’s education budget,25 less than half the share of the higher education sector. VET applicants who meet the entrance requirements get their full tuition covered at public VET institutes, and in priority study fields at private institutions.

6. Challenges in skills development. In 2018, the government adopted a new Law on Vocational Education 26 that revised the NQF, strengthened VET quality assurance, and expanded the network of public VET providers, including through public–private partnerships (PPPs). Despite these efforts, the VET system still falls short in three areas: (i) quality and relevance of VET; (ii) access to, and participation in, VET; and (iii) policy and institutional framework for VET. The lack of market-relevant skills affects both workers and employers by constraining earnings potential, productivity, innovation, corporate growth, and job creation, all of which hinders investment and a shift from low- to high-productivity sectors.27

7. Quality and relevance of training. The quality and relevance of VET programs are key concerns. Although Georgia ranked 46th on the skills pillar of the Global Competitiveness Index 2019, it fared poorly on key training components such as (i) extent of staff training, (ii) quality of VET, (iii) skills set of graduates, and (iv) ease of finding skilled employees.28 An inadequately educated workforce is also identified as one of the top five obstacles for innovators in Georgia by the Business Environment and Enterprise Performance Survey.29 In addition, one in five firms sees the lack of workers with solid digital

23 Ministry of Education, Science, Culture and Sport (MOESCS). Education Management Information System Data. Unpublished. 24 Agenda. 2019. Georgian PM Explains How Gov’t Will Spend Quarter of State Budget on Education. 8 March. 25 Government of Georgia. 2019. Funding for Education Sector by 2022 Will Reach 6% of GDP, i.e., Quarter of the State Budget, States Prime Minister of Georgia. Tbilisi. 26 Government of Georgia. 2018. Law on Vocational Education. Tbilisi. 27 World Bank. 2015. Skills Gaps and the Path to Successful Skills Development. Washington, DC. 28 World Economic Forum. 2019. The Global Competitiveness Report 2019. Geneva. 29 World Bank. Enterprise Surveys Data for Georgia. Washington, DC.

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skills as a major or severe problem that constrains their growth. In addition, although the employment rate for VET graduates rose by 4 percentage points during 2015−2017, a 2017 tracer study showed that the employment rate in 2017 was about 58%–64% for men and 55% for women.30 While some institutes perform well, quality is variable. The measured unemployment rate for those with a VET education was 11.1% in 2018, slightly below that of higher education graduates (12.9%).

8. A mismatch exists between the skills required in the labor market and those produced by the VET system. The Skills Towards Employability and Productivity survey by the World Bank highlighted the lack of adequate problem-solving and technical skills in employees. It also showed that employers were dissatisfied with the supply of skilled workers and found it difficult to hire workers with the skills they needed. The biggest demand was for middle-skilled workers rather than high-skilled workers. Beyond the educational background, employers are primarily looking for job-related skills, followed by positive personality traits. They generally believe that the educational system is not responding to the labor market needs.31 While firms need workers with low- and mid-level technical skills, the education system produces mostly graduates with higher education qualifications and graduates lacking soft and generic skills.32

9. The ability to deliver high-quality training is hindered by such factors as poor quality of the teaching workforce, as well as outdated facilities that are often not adequate for emerging skills areas. Low teacher salaries and the lack of teachers’ professional development hamper the ability to attract and retain high-quality teachers. Part-time work among teachers is common.33

10. Limited access and participation. A second key concern is the low VET participation rate—enrollments total less than 3% of young people aged 15–24, or only about 10% of the participation rate in higher education. A main reason is that higher education is seen as superior to VET for acquiring skills. Annual admissions to VET have declined since 2017 because of a fundamental change in the training approach—transition from general training to CBTA—and an increase in program duration from 6–12 months to an average 18 months. The small size of the VET system limits the impact it can have on individuals’ economic opportunities, on firms’ access to skilled labor, and on the economy more generally. Substantial gender segregation is visible in program choices and the labor market. Men tend to work in better-paying traditional male domains such as engineering and construction, while women engage primarily in low-wage areas such as health care and social work.34

11. Access to VET is limited by several factors. The unified admission examination required for entering government-funded VET institutes creates an academic barrier to weaker students who often come from poorer backgrounds. 35 This is exacerbated by the

30 MOESCS. 2017. Tracer Study of VET Graduates. Tbilisi. 31 U. Bardak. 2020. Policies for Human Capital Development Georgia: An ETF Torino Process Assessment. Turin, Italy: European Training Foundation. 32 Government of Georgia, Ministry of Economy and Sustainable Development. 2017. The Survey of Business Demand on Skills. Tbilisi; and World Bank. 2017. Skills Gaps and the Path to Successful Skills Development. Washington, DC. 33 Sector Assessment (Summary): Education (Technical and Vocational Education and Training) (accessible from the list of linked documents in Appendix 2). 34 ADB. 2018. Georgia Country Gender Assessment. Manila. 35 Currently, VET entrance examination administered by the central government mainly assess students’ marks on academic subjects. It is similar to entrance examination of general schools. A student who is good at practical skills and/or good at certain subjects might fail the examination, because of his/her poor marks on overall academic subjects. Discussion on examination reforms are on-going to develop tailor-made entrance examinations by the VET institutes.

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large presence of private VET institutes (para. 4), which are not affordable for many. Moreover, the network of VET providers spans only 37 of 69 municipalities, and is largely concentrated in the capital, Tbilisi.36 The small size of the system limits its ability to have a positive impact on individuals’ economic opportunities, and the country’s ability to diversify its economy.

12. Policy and institutional framework. A core weakness of the current policy and institutional framework is the limited engagement of the private sector in the development and planning of VET, especially in developing occupational standards which is the basis for VET curriculum. Private input was possible through the vocational education committees with employer representation that were created under the National Center for Education Quality Enhancement in 2014 to develop occupational standards and VET curricula. These committees operated until 2017 but are no longer functional. The new VET law envisages the creation of privately led sector skills organizations (SSOs) to drive the development of occupational standards. The 2018 law on PPP37 established a framework to institutionalize cooperation between VET institutes and the industry, but the use of PPPs remains limited. Because of a funding framework that favors public VET institutes, the capacity of private colleges is underused. Poor students cannot afford the tuition and other fees, so private VET institutes are generally only found in urban centers.

13. Policy reform agenda. Georgia’s VET system requires a significant improvement in its quality and relevance and a broadening of access. The program will support the government in removing critical constraints in line with the Unified Strategy for Education and Science 2017−2021, 38 which commits the government to increasing the number of skilled graduates by (i) aligning VET with labor market needs, (ii) ensuring broader access to VET, and (iii) promoting VET as a skills development pathway. Subprogram 1 begins the task of introducing concrete reforms in line with the goals outlined in the Unified Strategy, such as implementing a revised NQF; increasing access by launching a formal system of adult training; strengthening the governance of VET institutes and the system as a whole; improving teaching; reinforcing quality assurance; stepping up spending on VET; boosting the engagement of the private sector in the development of occupational standards and work-based learning (WBL); introducing PPPs; and extending the government’s voucher program to students enrolled in priority programs of private VET institutes. The second subprogram builds on the reforms of the first one in terms of teaching improvements, private sector engagement, PPPs, and broader access. It also deepens reforms in areas such as the development of a gender policy.

14. Response to COVID-19. The project design includes several measures to mitigate the impact of COVID-19, such as boosting sectors and programs that are effective in responding to a pandemic or in contributing to economic recovery (e.g., information and communication technology, and pharmaceutical and medical production). The project will finance the introduction of e-learning and the retraining of workers in hard-hit sectors to help them acquire new skills and find work in areas with increasing employment opportunities and higher value addition.

B. Project Objective

15. The program is aligned with the following impact: inclusive economic growth strengthened. The effect of the reform is: a responsive VET network promoting excellence in

36 46 out of the 52 private institutes are located in the 3 big cities: Tbilisi, Kutaisi and Batumi. 37 Government of Georgia. 2018. Law of Georgia on Public–Private Partnerships. Tbilisi. 38 Government of Georgia, Ministry of Education, Science, Culture and Sport. 2017. Unified Strategy for Education and Science 2017−2021. Tbilisi.

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skills development strengthened. The proposed program reform areas are: (i) quality and relevance of VET in priority economic sectors improved; (ii) access to, and inclusiveness of, the VET system increased; and (iii) institutional framework strengthened through increased private participation in VET. (All policy actions for subprogram 1 have been completed). The program's policy-based and investment components cover all reform areas. The impact of the project will be: labor productivity and competitiveness of the economy enhanced; its outcome will be: VET institutions and program aligned with evolving labor market needs. Proposed reform areas are summarized and discussed in more detail below.

Table 1: Summary Program Impact, Effect of the Reforms and Reform Areas

Country’s Overarching Development Objectivea Inclusive economic growth strengthened. Effect of the Reform Responsive VET network promoting excellence in skills development strengthened. Reform Area 1 Reform Area 2 Reform Area 3 Quality and relevance of VET in Access to, and inclusiveness Institutional framework priority economic sectors improved of, the VET system strengthened through increased increased private participation in VET • Upgrade at least 2 colleges into • Equip and strengthen at • Strengthen the proposed Skills Hubs in East and West least 20 general Skills Authority Georgia in 7 priority economic education institutions in • Establish and/or strengthen sectors municipalities with no SSOs in the seven priority • Support at least 2 Skills Hubs to other VET provision sectors to develop and apply introduce income generating across Georgia to valid labour market activities, strengthen short-term develop and deliver VET, intelligence systems and training for vulnerable groups and career guidance services develop and/or revise women, career guidance and and soft skills (including occupational standards distance teaching/learning language skills and • Finance specialized training services and provision of soft entrepreneurship) training targeting internationally skills training (including language • Develop and implement recognized programs for at skills and entrepreneurship) short-term VET programs least 500 individuals • 7 priority economic sectors are: for women and vulnerable • Pilot private management of electronic engineering, information groups public VET institute model in and communications technology, • Develop a VET gender at least 1 Skills Hub (or a services (hospitality and tourism), policy and guidelines department or school medical and pharmaceutical • Conduct social marketing within). production, fashion and design, campaigns to improve the water engineering, furniture image of VET and production and carpentry. encourage more female participation in non- traditional skills areas. a Government of Georgia. 2014. Socio-Economic Development Strategy of Georgia - ‘Georgia 2020’. Tbilisi. SSO = sector skills organization, VET = vocational education and training. Source: Asian Development Bank.

C. Environmental Category of the Project

16. The project is classified, as ADB Environmental Category B. According to the ADB Environmental Assessment Guidelines, Category B projects require environmental assessment in the form of IEE, which determines whether or not significant environmental impacts warranting an EIA are likely. If EIA is not needed, the IEE is considered as the final environmental assessment report.

D. Methodology of IEE Report

17. The following methodology was employed for this IEE study:

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18. The IEE study was carried out between June-December 2020, within the project TA by an environmental and safeguards specialist. As part of the assessment, a desk research of the project concept notes, technical assistant reports, legislation and available secondary data was carried out. ADB’s safeguard policy requirements and state legal framework were reviewed. Field observations were conducted on the project pre-selected sites for assessing existing conditions and potential project impacts. The key receptors and stakeholders were identified.

19. Due to the COVID-19 pandemic, a mixed approach was used for the consultation meetings, part of them were conducted online and some of them through on-site meetings. In the consultation process, different stakeholders were involved, such as skills hubs and schools’ administrations, teachers and students, local authorities, and community representatives. Field visits and stakeholder consultation meetings were conducted between June-December 2020.

20. The significant project impacts were assessed based on the review of the project proposed activities and field observations, and corresponding measures were proposed to reduce impacts within acceptable limits according to the national and international standards. Those measures are reflected in environmental management plan (EMP) and environmental monitoring plan.

E. Project Proponent

21. The project will be implemented from 2021 to 2026 (6 years). An inter-agency PSC will be established to guide the executing agency and monitor overall project performance and outcome. The PSC will be chaired by the MOESCS deputy minister and will be composed of representatives from various ministries and agencies, as well as the PIU director and private sector representatives. The PSC will (i) provide guidance on overall project implementation and in identification of investment activities based on prioritized targets; (ii) ensure coordination with relevant government agencies and stakeholders; and (iii) monitor the achievement of project outcomes.

22. Ministry of Finance (MOF) will be the executing agency (EA) for the policy-based loan and maintain overall responsibility for ensuring compliance with the conditions of the loan agreement. MOESCS will be the executing agency for the investment loan and will be responsible for overall management and implementation of policies and investment activities, including coordination and liaison with ADB and other stakeholders, as well as set up the PIU, mobilize and guide its staff as required.

23. The PIU within the MOESCS will be the implementing agency and will be responsible for day-to-day project implementation. Most PIU staff will be recruited from the market. PIU responsibilities include (i) preparation of master plan, detailed annual project and program implementation plans, annual disbursement and procurement plans, annual financial and accounting plans and schedules; (ii) procurement of goods, works, non-consulting and consulting services for all project components; (iii) establishment and management of the advance finance account; (iv) preparation and submission of withdrawal applications and replenishment of the advance finance account; (v) responsible and accountable for the use of funds in the Advance Account and implement SOE procedure in accordance to applicable terms; (vi) coordination and liaison with ADB, other relevant government agencies and implementation partners and stakeholders; (vii) establishment and implementation of the project monitoring systems and monitoring, evaluation and reporting on program implementation progress; (viii) preparation of quarterly and annual progress reports, mid-term report and program completion report; (ix) preparation of annual forecast of contract awards and disbursements; (x) organization and management of training

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programs, including workshops; and (xi) Implement the project in conformity with relevant ADB and government procedures and regulations, and good governance.

F. Structure of the Report

24. The IEE report format is as follows:

(i) Executive Summary (ii) Introduction (iii) Policy and Legal Framework (iv) Project Description (v) Analysis of Alternatives (vi) Description of the Environment (vii) Anticipated Impacts and Mitigation Measures (viii) Information Disclosure, Consultation and Participation (ix) Environmental Management and Monitoring Plan (x) Project Grievance Redress Mechanism (xi) Conclusions and Recommendations (xii) Annexes

G. Limitations to IEE study and Further Updating

25. Despite the short time available for the field visits mainly caused by COVID-19 pandemic and a long list of the schools for preselecting the project sites (covering over 60 secondary education schools and 4 VET colleges), located across the country, 28 sites were visited by the Environmental and Social Safeguards Specialist. Information about the rest of the sites has been obtained through a review of the secondary data and from other staff members, mainly from architects. Also, baseline data on air, noise and water have been collected and analyzed. The IEE study identifies potential risks, environmental impacts and mitigation measures based on the available information obtained from site visits and other available data, which are incorporated into the general EMP. Additional details shall be included in the site-specific EMPs, which will be prepared by contractor(s) 10 days prior starting the civil works.

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II. POLICY AND LEGAL FRAMEWORK

A. General

26. This section provides an overview of the policy framework and national legislation that applies to the scope of work to be conducted under the proposed project. The project is expected to comply with all national legislation relating to environment in Georgia, and to obtain all the regulatory clearances required.

B. Statutory Framework

27. Georgian legislation comprises the Constitution of Georgia, environmental laws, international agreements, subordinate legislation, normative acts, presidential orders and governmental decrees, ministerial orders, instructions, and regulations. Along with the national regulations, Georgia is signatory to several international conventions, including those related to environmental protection. The MOEPA is responsible for regulating the activities that affect the natural environment. The key environmental laws affecting the project are discussed below.

C. Legal and Administrative Framework

Legal Framework

28. A list of Georgia’s environmental legislation as it pertains to the proposed project is given in Table 2.

Table 2: List of Environmental Laws and Regulations Relevant to the Project Year Law / Regulation Last Code revision 1994 Law on Soil Protection 07/12/2017 370.010.000.05.001.000.080 1995 Constitution of Georgia 23/03/2018 010.010.000.01.001.000.116 1996 Law on Subsoil 22/12/2018 380.000.000.05.001.000.140 1996 Law on Environmental Protection 15/10/2019 360.000.000.05.001.000.184 1996 Law on the System of Protected Areas 20/07/2018 360.050.000.05.001.000.127 1997 Law on Wildlife 26/12/2018 410.000.000.05.001.000.186 1997 Law on Water 20/07/2018 400.000.000.05.001.000.253 1999 Law on Protection of Atmospheric air 05/07/2018 420.000.000.05.001.000.595 2020 Forest Code of Georgia 28/05/2020 390000000.05.001.019838 1999 Law on Compensation of Damage from 07/12/2017 040.160.050.05.001.000.671 Hazardous Substances 2000 Law on Regulation and Engineering 20/07/2018 400.010.010.05.001.000.830 Protection of the Sea and River Banks 2003 Law on Red List and Red Book of Georgia 22/12/2018 360.060.000.05.001.001.297 2003 Law of Georgia on Conservation of Soil and 07/12/2017 370.010.000.05.001.001.274 Restoration-amelioration of Soil Fertility 2005 Law on Licenses and Permits 19/02/2020 300.310.000.05.001.001.914 2014 Waste Code 26/11/2019 360160000.05.001.017608 2017 Environmental Assessment Code 05/07/2018 360160000.05.001.018492 Source: Parliament of Georgia.

1. Constitution of Georgia, 1995

29. Constitution of Georgia states the basic rights of people to live in a healthy environment and obligation to protect it. According to the Constitution, everyone has the right to obtain complete, objective, and timely information about environmental conditions (Art. 37, Part 3). It assures that the state shall protect environment and foster sustainable

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development (Art. 37, Part 4). It establishes a legal framework that guarantees public access to information about the condition of the environment (Art. 37 Part 5, Art. 41 Part 1).

2. Environmental Assessment Code (EAC), 2017

30. The Code establishes a legal basis for regulating issues related to projects and strategic documents, which implementation may have significant impact on the environment, human life and health. It regulates the procedures related to environmental impact assessment, strategic environmental assessment, public participation in decision-making, trans-boundary environmental impact assessment; defines rights and obligations of the developer, the planning authority, the public and the competent authorities in the course of decision-making envisaged by this Code; describes procedures of issuing Environmental Decision; exemption rules. The law includes two annexes. Annex I list activities subject to EIA, Annex II—lists activities/projects that require screening procedure. Screening is responsibility of MOEPA. Under the Environmental Assessment Code (EAC) construction of international and interstate roads; construction and operation of tunnels and/or bridges on the international and interstate roads belongs to activities subject to EIA.

31. According to the document, the main stages of EIA include: (i) Screening; (ii) Scoping procedure; (iii) Preparation of the EIA Report by the developer or the consultant; (iv) Ensuring public participation; (v) Examination of the information presented in the EIA Report and any supplementary information provided by the developer to the Ministry as well as assessment of the information received through the public participation and consultation processes; (vi) Expertise procedure; (vii) Implementation of transboundary environmental impact assessment procedure (weather appropriate); and (viii) Issuance of Environmental Decision or the decision on refusal to implement the project by the Minister.

3. Law on Licenses and Permits, 2005

32. Law on Licenses and Permits regulates legally organized activities posing certain threats to human life/health, and addresses specific state/public interests, including usage of resources, regulates activities requiring licenses/permits, determines types of licenses/permits required, and defines the procedures for issuing, revising and cancelling of licenses and permits. The law is generic and refers to the EAC for details of environmental permitting (environmental decision) procedures.

4. Law on Environmental Protection, 1996

33. Law on Environmental Protection regulates the legal relationship between the bodies of the state authority and the physical persons or legal entities (without distinction-legal form) in the field of environmental protection and in the use of nature on all Georgia’s territory including its territorial waters, airspace, continental shelf and special economic zone. The Law defines the principles and norms of legal relations, rights and obligations and responsibilities, awareness raising, education and scientific research in the field of environment, key players and principles of environmental management; describes economical mechanisms and levers; ecological insurance; basics of environmental audit; environmental requirements during privatization; justifies needs of environmental standards and limits (air, water, soil, noise, vibration, fields, radiation) and ecological requirements for

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production, transportation and storage of goods and food products; ecological requirements applicable to waste; states necessity of environmental impact assessment and related issues (strategic environmental protection and transboundary environment assessment) referring to EAC; defines general principles of environmental protection; considers different aspects on protection of ecosystems, protected areas, issues of global and regional management, protection of ozone layer, biodiversity, protection of Black Sea and international cooperation aspects. According to the law (Article 29) quality standards for environment are defined once in 5 years. The limits are set in provisions on Qualitative limits, approved by the Ministry of Internally Displaces Persons from the Occupied Territories, Labour, Health and Social Affairs (MOIDPLHSH).

34. As stated in the law, to protect the climate against the global changes, the subject of the business activity is obliged to observe the limits to green-house gas emissions as well as to take measures for mitigating this emission. The emission of the green-house gases is regulated based on integrated control of pollution of environment (Article 51). Besides, the subject of the business activity is obliged to reduce or stop production and use of such chemicals, which are likely to have effects on the ozone, layer of the earth and cause depletion of it (Article 52). The law sets requirements related to waste management (prevention, reduction, recovery, and disposal) compliant with sanitary and epidemiological norms and rules, bans dumping of waste into the surface water, requests developers/businesses to develop and enforce emergency response and natural calamities management plans.

5. Law of Georgia on Subsoil, 1996

35. Law of Georgia on Subsoil deals with the status, study, and usage of mineral resources. The law describes rights and obligations of the users (Including re-cultivation after expiration of the license term), duration of the licenses (for energy resources – up to 45 years; for metal ores – up to 40 years; up to 30 years for construction materials and other non-ore mineral resources; ground water and gas (except for the natural gas) – up to 25 years); protection of natural resources and safety requirements; termination of license; state supervision and control over the use of mineral resources; general requirements during mining. Regarding the issues related to the licenses for use of the natural resources, the law gives reference to the law on Licenses and Permits, Law on Oil and Gas and related regulations. The law states the need for protection of environment and occupational health and safety (OHS) during operation (mining), including requirements for waste (including wastewater) management. The law bans abstraction of inert material from the riverbed or seacoast protection strip and in those cases when material abstraction affects the riverbed and/or violates stability of hydrotechnical structures (dams, bridges, retention walls, etc.).

36. Removal of inert material is not allowed within the stretch of the river from the dam to the end of the section within which no tributaries providing sufficient volume of solid sediments are available. In such area’s abstraction of material from the river terrace (in 50 m. from the riverbed) is prohibited. Abstraction of inert construction material from other sections and reservoirs is allowed. According to the law extraction and treatment of mineral resources from deposits both of natural and technogenic origin (soil disposal areas) are subject to state supervision and control. The license for abstraction is issued by the Ministry of Economy and Sustainable Development (MOESD).

6. The Waste Management Code, 2015

37. The Waste Management Code provides the legal conditions for implementation of measures aiming at prevention of generation of waste and increased re-use, environmentally-sound treatment of waste (including recycling and extraction of secondary raw materials, energy recovery from waste, as well as safe disposal).

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38. The following summarizes the key points of the code.

Article 7 – General waste management requirements − Waste, depending on its type, properties, and composition, shall be collected, transported, and treated in a manner not impeding its further recovery. − Waste shall be collected, transported, and treated in a manner which excludes, to the maximum extent possible, pollution of the environment and risks for human health. − In case of waste pollution caused by waste transport activities, the waste transporter shall be responsible for taking clean up measures. − The producer and holder of waste is obliged to treat their waste on their own or hand, it over for collection, transport and treatment to persons entitled to carry out such operations in accordance with this Law and legislation of Georgia. − Where waste has been submitted for recovery or disposal, the original producer’s and/or holder’s responsibility shall remain until recovery or disposal is completed. − Persons who collect and transport waste shall hand it over for treatment to appropriate facilities, holding the relevant permit or registration. − The burning of waste outside permitted incinerators shall be prohibited.

Article 14 – Company waste management plan − Legal and natural persons that produce more than 200 tons of non-hazardous waste or 1000 tons of inert waste or any amount of hazardous waste annually, shall prepare a company waste management plan.

Article 15 – Environmental Manager − The persons under Article 14 of this Law shall nominate a suitable person as a company environmental manager.

Article 17 – General obligations for hazardous waste management − The production, collection, and transportation of hazardous waste, as well as its storage and treatment, shall be carried out in conditions providing protection for the environment and human health. − It shall be prohibited to: discard hazardous waste outside waste collection containers; − discharge it into the sewerage systems or underground or surface waters, including the sea; burn it outside waste incinerators permitted for that purpose; treat it outside waste treatment facilities permitted to treat such type of waste.

Article 18 – Special obligations for hazardous waste management − Waste producers that produce more than 2 tons of hazardous waste per year shall create and implement a suitable separation and collection system for such waste; − designate an environmental manager, pursuant to Article 15 of this Law, responsible to make arrangements for the safe management of solid waste; − make arrangements for briefing and training for staff handling hazardous waste; − Until the exact content of waste is unknown, the waste shall be regarded as hazardous; − Hazardous waste for which no appropriate treatment techniques and/or technologies are available in accordance with the requirements of this Law within the territory of Georgia shall be exported for treatment. Until the export is carried out, the waste shall be safely stored at temporary storage facilities. − The Ministry may exceptionally once allow for an extended storage period of up to one year if this is justified and does not harm human health or the environment. Hazardous waste may only be collected and transported by a natural or legal person after its registration pursuant to this Law.

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Article 29 – Obligations for keeping records and reporting on waste − Records on waste shall be kept and waste reports shall be submitted to the Ministry by natural and legal persons: (1) dealing professionally with collection, transport and/or treatment of waste; (2) which produced more than more than 2 tones non- hazardous (excluding municipal waste) waste or any amount of hazardous waste per year.

7. Other Relevant Laws

39. Several other national laws are important in the context of environmental management. The main laws that potentially affect the project are listed below.

(i) Law on Protection of Atmospheric Air (1999). The law regulates protection of atmospheric air from man-caused impact. Pollution of atmospheric air is emission of hazardous substances originating from activities which can have negative impact on human health and environment. Four types of pollution are considered (Part II, Chapter IV, Article II.2): Pollution of environment with hazardous matter, Radiation pollution of atmospheric air. The law distinguished three types of the sources of hazardous emissions: stationary, mobile, and disperse. Pollution with microorganisms and biologically active matter of microbial origin, Noise, vibration, electromagnetic fields, and other physical impact. Maximum permitted limits for concentration of hazardous substances into the atmospheric air are defined for each contaminant and represent maximum concentration of hazardous pollutants, in averaged time span, recurring action of which has not have negative impact on human health and environment.

Maximum permitted levels of emission of hazardous matters into the atmospheric air are defined with allowance of prospective of development of the enterprise, physical. Geographical and climatic conditions, dispersion of emitted substances, background concentration of pollutants emitted from other neighboring enterprises, considering inter-location of existing or planned dwellings, sanatoria, and recreation zones. In compliance with the law (Art. 28), to restrict pollution from the stationary sources39 of hazardous emissions the limits of emissions are to be set. The limit of pollution from the stationary source of emission is permitted quantity (mass) of emitted hazardous matters (Art. 29). Maximum annual emission level means the maximum permitted limit of discharge. This is annual permitted quantity of emission predetermined by technology in conditions of standard permitted capacity of discharge. Annual maximum capacity is defined for each hazardous substance and is calculated so that for each stationary source of emission cumulative emission from all registered sources of discharge does not exceed relevant maximum permitted value. Discharge of hazardous emissions from the stationary sources of emission without approved limits of discharge is forbidden. The standards of emissions (Art. 30) are to be worked out by the enterprise itself. According to Article 38, the enterprise is responsible for conducting self-monitoring which includes measurement of emission, recording/registration and accounting. Emission which has not been recorded in self-monitoring record is considered illegal. Results of the monitoring and information on pollution of the air with hazardous substances is transparent and accessible for the public.

39 Stationary source of pollution of the atmospheric air is stationary device or construction with a special emission unit. Any stationary device or construction which, proceeded from its technological peculiarities, is not fitted with sputtering device is also considered as a stationary source of emission.

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(ii) Forest Code of Georgia (2020). The Code considers environmental, social, and economic functions of forest and interests of local communities. According to the new Code, the forest is divided into four different categories—protected forest, protection forest, resort and recreational forest and commercial forest, for the purposes to preserve the environment function and biodiversity of forest; to facilitate and enhance soil, water and climate regulation functions; to use rationally the productivity of forests taking into consideration the long-term benefits, including resources, tourism and recreational potential of forests; to facilitate sustainable development of various economic sectors related to forest ecosystem services and to protect forest ecosystems from negative cumulative effects. According to the new Forest Code, the forest may be under state, municipal, or private ownership.

(iii) Law on Water (1997). The Law regulates water use, defines rights and obligations of water users, sets out the types of licenses for the use of water, the rules, and conditions of their issuance, considers conditions of suspension, withdrawal and deprivation of license, regulates water flows. The law states liability of all natural and legal persons to prevent pollution of catchment basins, water reservoirs, snow and ice covers, glaciers, permanent snow cover with industrial, household and other wastes and emissions which may cause deterioration of the underground water quality; prohibits piling of industrial and household wastes near the public water headwork’s and in their sanitation zones, bans construction of facilities and implementation of any other activity which may cause water pollution; sets requirements for forest use within water protection zones. The state management of water protection and use is exercised through accounting, monitoring, licensing, control and supervision.

State monitoring of water is implemented by the Legal Entity under Public Law – the National Environmental Agency under MOEPA. By virtue of the law when locating/designing/constructing/commissioning of a new or reconstructed enterprise, or other facility, as well as in introducing of new technological process capable to affect the state of water, the rational water use is to be secured. At the same time, attention is to be paid to the measures ensuring due accounting of water abstracted from and returned to water bodies; protection of water from contamination, pollution-and depletion; avoidance of the unfavorable water impact; restriction of land flooding up to minimum necessary level, protection of land from silting, swamping, or drying up; as well as environmental protection and landscape preservation.

Under the law required is purification, up to the fixed standard, of the wastewater discharged in a water body. To protect the quality of water resources, the law requests creation of sanitary protection zone that consists of three belts, each having a special regime. The procedure fixing the water quality standards, the maximum permissible rates of emission of harmful substances (including microorganisms) into ambience, the water abstraction quotas and the temporary rates (limits) of emission of harmful substances (including microorganisms) into water is defined by the Law of Georgia on the Environmental Protection.

(iv) Law on Wildlife (1997). The law regulates wildlife protection and use including hunting and fishing. The main goal of the law is to ensure protection and restoration of wildlife, its habitats, preservation and sustainability of species diversity and genetic resources, creation of conditions for sustainable development, considering the interests of present and future generation; legal ensuring of wildlife protection (including in-situ and ex-situ conservation,

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translocation, and reproduction of wildlife) and state-based provision of use of wildlife objects. In addition to this law, Georgian legislation on the wildlife is based on the Constitution of Georgia, Georgia’s international agreements and treaties, laws on Environmental Protection and on the System of Protected Areas, law of Georgia on Wildlife and law of Georgia on the “Red List” and “Red Book”. It is one of the main goals of the Environmental Protection Law to support the preservation of biodiversity of the country, the preservation of rare, endemic, and endangered species, the protection of the marine environment, and the maintenance of the ecological balance (Art. 3.1). The Law contains regulations on both wild animals and plants which are threatened by extinction and those which are not. Two main legal acts regulating the issues of species protection in Georgia.

(v) Law on Red List and Red Book (2003). The law gives the legal definitions of Red List and Red Book (relevant recommendations and methodological issues) of endangered species of Georgia. The Red List structure was also legally defined, as well as the relevant procedures for including species in the Red List, procedures for revising, and updating of it. The Law also regulates issues related to planning and financial matters connected with the protection, taking of, rehabilitation and conservation of endangered species. The Red List of Georgia was approved by Order of President of Georgia N. 303 (2006), later – by the Resolution of the Georgian Government N 190 (20/02/14). The law defines special cases when removal of individuals of the Georgian Red List species from their habitats is allowed. Decisions are made by the Government of Georgia. Protection of endangered/protected species in the boundaries of protected area is regulated by law of Georgia on Protected Areas.

The law was updated in 2014. It now includes some 56 plant and 139 animal species, including 33 mammals, 35 birds, 11 reptiles, 2 amphibians, and 11 fish (including all sturgeon). Of these, 20 plant and 43 animal species are categorized as critically endangered (CR) or endangered40, and 4 mammals may be extinct. The “Red Book” of critically endangered species includes information on the status, habitat, home range, quantity, reproduction areas and conditions, protection measures and risk factors for species listed in the Red List. In terms of plants, some 275 species of vascular plants are considered endemic to Georgia, of which approximately 60% (152 species) are considered endangered, although there is insufficient information form them all to be included in the Red List.41

(vi) Law on Soil Protection (1994). The law provides the policy requirements and principles of the protection and preservation of fertility soil resources against negative impacts. Soil protection is the state problem since correct and rational use of all types of soil, including barren soil, saline soils, swamped soil, alkali soil and aqueous soil are the main reserve of dynamic development of agriculture and of the national economy. The purpose of the present Law is to establish the rights and the duties of landholders, landowners, and the state in the field of soil protect. The law defines soil protection measures and methods and prohibits certain activities, e.g. use of fertile soil for non-agricultural purposes; implementation of non-agricultural activity without topsoil removal and conservation; any activity, which results in deterioration of soil properties, etc. In addition to this law soil protection issues are regulated by order N2-277

40 44 vertebrate species are also included in the IUCN Red List as CR, EN or VU – see later. 41 https://www.cbd.int/doc/world/ge/ge-nr-05-en.pdf

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(25/11/2005) of the Minister of Agriculture on approving Recommendations for Complex Measures for Soil Protection from the Erosion.

(vii) Law of on Conservation of Soil and Restoration-Amelioration of Soil Fertility (2003). The law is to ensure conservation and improvement of soil in the territory of Georgia, define the legal principles, measures, limitations and prohibitions to that end; soil conservation and fertility restoration improvement measures. It prohibits unregulated grazing, removal of windbreaks, application of non-registered fertilizers or other substances, soil contamination and any activity, which results in deterioration of soil properties and facilitates desertification, swamping, salinization, etc. Businesses that use soil or conduct activities upon soil that have the potential to negatively impact soil conservation are required to follow the Law and related normative documents and regulations, including Order N113 (27/05/2005) of the Minister of Environment and Natural Resources’ Protection on affirming regulation on “Removal, Storage, Use and Re-cultivation of the Fertile Soil Layer” and 2) Resolution of the GoG N424 (31/12/2013) on affirming technical regulations on “Removal, Storage, Use and Re-cultivation of the Fertile Soil Layer”. These documents consider issues of land resources protection and rational use and issues related to removal, storage, use and re-cultivation of the fertile soil layer during different activates. According to the regulation, restoration of degraded soil fertility must be implemented using re-cultivation (technical and biological) methods.

(viii) Law on System of Protected Areas (1996). The law Forms a legal basis for planning, establishment and maintenance and assignment of categories of protected areas (state reserve, national park, natural monument, managed reserve, protected landscape, and multipurpose use area), defines zoning within the protected areas, describes funding issues for each category. It specifies ownership forms of land and other natural resources in protected areas, allowed and prohibited activities. The planning of the system of protected areas is performed by the MOEPA, the legal entity under public law - Agency of Protected Areas operating within the MOEPA, and the MOESD. Decisions on the creation, territorial expansion and upgrading of protection categories of protected areas in Georgia is made by the Parliament of Georgia.

(ix) Law on Compensation for Damage Caused by Hazardous Substances (1999). The law includes principles and procedures for compensating the negative impacts caused by discharge of hazardous substances into environment.

40. Laws and regulations related to social aspects and land ownership applicable to the project are presented in Table 3.

Table 3: List of Social and Land Ownership Related Laws Relevant to the Project Year Law / Regulation Last Code revision 1996 Law on Agricultural Land Ownership 16/06/2017 370.030.000.05.001.000.132 1997 Civil Code of Georgia 23/12/2017 040.000.000.05.001.000.223 1997 Law on Compensation of Land Substitute 25/12/2014 370.020.000.05.001.000.244 Costs and Damages due to Allocating Agricultural Land for Non-agricultural Purposes 1999 Law on Rules for Expropriation of Property 06/09/2013 020.060.040.05.001.000.670

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for Public Needs 2005 Law of Georgia on Spatial Development and 25/07/2017 330.090.000.05.001.001.845 Basis for City-building 2007 Law on Cultural Heritage 07/12/2017 450.030.000.05.001.002.815 2007 Law on Public Health 07/12/2017 470.000.000.05.001.002.920 2010 Law on State Property 07/12/2017 040.110.030.05.01.004.174 2010 Labor Code 04/05/2017 270000000.04.001.016012 2015 Law on Development of High-mountain Areas 05/07/2018 010110020.05.001.017881 Source: Parliament of Georgia

41. Brief summaries of the listed laws are given below.

42. Civil Code of Georgia (1997). The code regulates contractual relations, describes the rights and responsibilities of natural and legal persons, defines the penalties in the case of violations of the requirements set out in the document. The Civil Code differentiates between movable and immovable property and provides rules for acquiring title over property, as well as any proprietary or obligatory rights thereto. This piece of legislation must be considered when entering contracts in Georgia.

43. Labor Code of Georgia (2010). The code regulates employment relations, unless such relations are otherwise regulated by international treaties that have been implemented in Georgia. Employers are obliged to comply with requirements and clauses of the document for the purpose of ensuring that the rights of employees are protected.

44. Law on Public Health (2007). The law regulates legal relations for ensuring a safe environment for human health. It indicates quality norms of for air, soil and water pollution and restrictions related to ionized radiation, noise and vibration. The limits must be complied with. Section 7 of the law is dedicated to safety of technological processes.

45. Law on Compensation of Land Substitute Costs and Damages (1997). Due to Allocating Agricultural Land for Non-agricultural Purposes, the law defines compensation amounts, required at the time of allocation, use or disposal of agricultural land parcel for non-agricultural purpose; the payment procedure and the procedure for changing the agricultural land category, including payment of losses to landowners or land users, as a result of restricting their rights or reducing the quality of their land.

46. Law on Agricultural Land Ownership (1996). Objective of the law is to ensure improvement of the structure of agricultural land based on rational use of resources, avoidance of splitting and unsustainable use of the land plots. The law defined the rules for acquisition and selling the land, participation of the state in agricultural land related relations. The law deals with land ownership issues, restrictions of land alienation in case of co- ownership, sets priority of the state in buying out the agricultural land plots.

47. Law on rules for expropriation of property for public needs (1999). The law outlines respective procedures and conditions for expropriation of private property as well as procedures for compensation payment for expropriated property or the transfer of other property with the same market value.

48. Law on State Property (2010). The law regulates relationships on state property management and transfer for use by others, defines special requirements and procedures for transfers. The Ministry of Economy and Sustainable Development is the state authority in charge of the property.

49. Law on Labor Safety (2018). The law defines general requirements and preventive measures related to safety on worksites; avoidance of existing and potential hazards,

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accidents/incidents, and professional diseases; training, awareness raising, communication and consultations with equal involvement/participation of employees. The law regulates rights, obligations and responsibilities of state institutions, employers, employees, and employees’ representatives in providing safe and healthy environment. The law applies to dangerous, hazardous, heavy and works with/in dangerous working conditions. The list of high-risk works is defined by the government in consultations with social partnership.

50. Law on Cultural Heritage (2007). The law sets out procedures for protection of cultural heritage and permitting arrangements for archaeological investigations.

51. Law on Spatial Development and Basis for City-building (2005). The law regulates the spatial development and the process of city-building, including the development of the accommodations, settlements, and infrastructure regarding the requirements of the cultural heritage and environmental policies. In this field, the law defines the rights and obligations of the state authorities, physical and legal entities, principles of spatial development and city-building, its priorities, goals and tasks, as well as the form and the role of the spatial-territorial planning and planning documents in terms of the development of the territorial development of Georgia.

52. Law on Development of High-mountain Areas (2015). The policy implemented by the State towards high mountainous regions is part of the regional development policy of the country and is aimed at ensuring the equal socio-economic development of the entire territory of Georgia and at solving the social and economic problems of persons living in high mountainous regions. The aim of this Law is to determine the benefits of encouraging the social and economic progress of high mountainous regions as guaranteed by the Constitution of Georgia; such benefits ensure the well-being of persons living in high mountainous regions, raise living standards, promote employment, and improve social and economic conditions. Regardless of their altitudes, the status of high mountainous settlement has been granted to settlements located within the following historic and geographic areas: , , Pankisi Gorge, mountainous Adjara, Gudamakari Valley, Pshav-, , Upper Svaneti, Kvemo Svaneti (lower Svaneti), Lechkhumi and Racha.

53. Permanent residents of high mountainous settlements shall enjoy tax privileges established by the Tax Code of Georgia in relation to income tax and property tax. Business entities which, in accordance with the legislation of Georgia, have been granted the status of high mountainous settlement enterprise shall be exempt from taxes under the terms and rules defined by the Tax Code of Georgia. The administrative body with power to grant to business entities the status of high mountainous settlement enterprise, and the terms and conditions of granting, terminating, and suspending the status of high mountainous settlement enterprise, shall be determined by the rules for granting, terminating and suspending the status of high mountainous settlement enterprise, which shall be approved by ordinance of the Government of Georgia.

54. The Constitutional Agreement between the State of Georgia and the Apostolic Autocephalous Orthodox Church (2002). The agreement regulates the relationship between the State and the Church. Its provisions (art. 7, 8 and 9) have a major impact on the management of cultural heritage in the country. By this agreement all the religious buildings and related structures on the territory of the country, in use or without function, standing or in ruins, together with their parcels and all the immovable ecclesiastic treasures protected in museums and archives are handed down in the ownership of the Church of Georgia (Art. 7 and 8). The Ministry of Culture and Monument Protection must agree with the Church of Georgia in the process of adopting protection zones, rules and methodologies, planning and approving rehabilitation projects or scientific research of movable and immovable religious monuments. Together with the state, the Church is responsible for maintenance and care of

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the monuments in its ownership (Art. 7 and 9). The property of the Church is exempt from the state taxes (Art. 5). According to the Concordat the church is the owner of the majority of immovable listed properties in the country, most of which, at the same time, are living heritage sites, with the religious function being restored and enhanced after the fall of Soviet regime. Because of this special circumstance, the specific rules for maintenance and exploitation of these properties need to be elaborated.

Administrative Framework

55. Ministry of Environment Protection and Agriculture (MOEPA). In December 2017, MOEPA had its responsibilities split between the ministries of agriculture and economy, with the latter also taking over the Ministry of Energy. MOEPA is responsible for all environmental protection issues and agriculture in Georgia. The responsibilities of the Ministry as the competent authority are: (i) to intermit, limit, or stop any activity having or likely to have adverse impact on the environment, (ii) to carry our screening of planned development, (iii) to implement scoping, (iv) to issue environmental decision for project subject to EIA procedure (ref. EAC), (v) to control the execution of mitigation measures by the developer, and (vi) to organize public meetings and discussion of an estimation of influence on environment and prepares the documentation (the project of the order of the minister) to let out the permission to influence to environment.

56. Ministry of Education, Science, Culture and Sport (MOESCS). The Ministry is responsible on supervision of the construction activities to protect archaeological heritage42. The ministry is a main policy-making body in the field of education, science, culture and sport. The ministry is responsible for further development of education and science directions and promotes harmonization of national programs of relevant state institutions with international education standards. It is also the competence of the Ministry to establish the conditions and rules for the recognition of non-formal vocational education and development of programs for the improvement of its quality. The Ministry ensures collaboration and implementation of the programs for the development of institutional, material-technical, and human resources of the professional education institutions. The Ministry is responsible for the development and management of sectorial policy on cultural heritage.

57. The National Agency for Cultural Heritage Preservation (NACHP). The NACHP is an entity of public law subordinated to the MOESCS. The Agency was established on the basis of the thirteen state Museum Reserves and entrusted to carry out the protection, maintenance, inventory, research, conservation and rehabilitation of cultural heritage and to advice the Ministry on the heritage policy issues. The Agency is responsible for management and monitoring of national monuments and World Heritage Sites in the country and for granting permits for conservation and rehabilitation project for these monuments. The Agency is also responsible for protection the inventory and promotion of movable and immovable cultural heritage objects, scientific research, consulting, and expertise in the field of cultural heritage.

58. Ministry of Finance (MOF). MOF is responsible for the formation of budget policy and ensures compliance of budget processes with international standards; develops and facilitates of the implementation of state investment management methodology; participates in the selection process of investment projects within its competences and in evaluations according to the established methodology.

42 In 2019, Ministry of Culture, Monument Protection and Sport of Georgia was merged with the Ministry of Education and Science of Georgia forming MOESCS.

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59. Ministry of Economy and Sustainable Development (MOESD). MOESD is responsible for carrying out the review of technical documentation (including conclusion of independent experts) and issuing Permits on Construction for projects, as well as for supervision over constructing activities and for arranging Acceptance Commission after completion of construction. State supervision of construction and compliance monitoring is provided by the Main Architecture and Construction Inspection, which is operating under the Ministry of Economy and Sustainable Development of Georgia. Following to reorganization of MOEPA and the Ministry of Energy the MOESD took over the functions of the latter, as well as part of the main functions of MOEPA (i.e., licensing activity). The MOESD is a responsible institution for developing and administrating Labour Market Information System (LMIS). The LMIS information providers include: MOESD, Enterprise Georgia, Georgia’s Innovation and Technology Agency, National Agency of State Property, National Statistics Office of Georgia, MOESCS, Education Management Information System, NCEQE, MOEPA, Agricultural Projects’ Management Agency and Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs (MOIDPLHSA).

60. Ministry of Regional Development and Infrastructure (MRDI). The MRDI is responsible for the development, implementation, and coordination of regional development policy and for monitoring and analysis of its implementation. Within the scope of its competence develops of proposals for the implementation of infrastructural projects for the socio-economic development of municipalities and coordinates regional programs and projects funded by local and foreign sources and evaluates the effectiveness of their implementation; ensures and coordinates implementation of measures to promote development of water supply systems. The ministry is also responsible for arrangement and management of non-hazardous waste landfills and for the development of state policy on road networks.

61. Ministry of Internally Displaced Persons from the occupied territories, Labor, Health and Social Affairs. MOIDPHLSA together with other ministries, institutions and social partnerships defines the state policy on labor safety; supports awareness raising and training sessions, develops proposals and recommendations related on labor safety programs. MOIDPHLSA is represented in Trilateral Commission of Social Partnership together with the Ministry of Justice (MOJ), MOESD, MRDI and MOESCS. MOIDPLHSA defines the scope, qualification requirements, condition and rules for accreditation of labor safety officers; elaborates incident evidence gathering and keeping procedures as well as reporting rules and terms; together with Social Partnership acts as mediator in collective labor disputes, monitors implementation of occupational health and safety conventions, recommendations and agreements, develops reports on the subject, ensures cooperation with International Labor Organization and other international and governmental institutions, and carries out labor market studies and analysis. Service for the Protection of Labor Safety Regulations under the MOIDPLHSA monitors and implements supervision over compliance with the labor safety rules, investigates incidents and professional deceases cases and registration.

D. Environmental Regulations and Standards

62. Georgia has a large set of specific standards that refer to emission, effluent, and noise standards, as well as standard to handle and dispose specific wastes ranging from sewage to hazardous wastes. The following summarizes these laws and standards along with International Finance Corporation (IFC) and the European Union (EU) standards.

a. Ambient Air Quality Standards

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63. Maximum permissible values for air born pollutants are set by Technical regulations – Ambient Air Quality Standards (GoG Decree N383, 27/07/2018 27). Georgian values mirror EU standards.

Table 4: Ambient Air Quality Standards Parameter Maximum IFC Guideline EU Ambient Air Averaging Permissible Value Quality period value Guidelines Sulphur dioxide (SO2) μg/m3 350 350 1hr 125 20 125 24hr Nitrogen dioxide (NO2) μg/m3 200 200 200 1hr 40 40 40 1 year Particulate matter (PM10) μg/m3 50 50 50 24 hr 40 1 year Particulate matter (PM2,5) μg/m3 25 10 25 1 year Ozon (O3) 120 100 120 Daily max. μg/m3 average 8 hr(2) Carbon Monoxide (CO) 10 10 8 hr IFC = International Finance Corporation, EU = European Union. Source: Technical regulation on approval of atmospheric air quality standards (approved by GoG on 27/07/2018, document code 300160070.10.003.020699).

64. Project Air Quality Standards. The ambient air quality sampling undertaken for this report and the air quality model will be assessed against National and EU standards.

b. Water Quality Standards

65. Surface Water. Surface water quality requirements depend on category of water body (ref. Technical regulations of protection of surface water from pollution, approved by decree N425 of the government of Georgia, 31/12/2013). The categories are: (i) household water use, (ii) domestic water use, and (iii) fisheries. The latter, in its turn, splits in highest, first and second categories.

Table 5: Surface Water Quality Requirements by Water Use category Water use category Household water Recreational Fisheries use water use43 Highest and first Second Increase not higher that listed below is allowed Suspended 0.25mg/l 0.75 mg/l 0.25mg/l 0.75 mg/l solids For rivers with natural content of suspended solids 30mg/l, around 5% increase is allowed If wastewater contains suspended particles with deposition rate above 0.2mm/sec discharge in water reservoirs is not allowed. Discharge of effluents containing suspended particles with deposition rate above 0.4mm/sec is prohibited. Floating matter Patches and films of oil, petroleum products, fats must not be detectable Colour Must not be visible in water column Water must not have unusual color

43 According to the Technical regulations for protection of surface water from pollution three categories of water use are set: 1. სასმელ–სამეურნეო (хозяйственно-питьевое, literally drinking-domestic) which is generally translated as household water use. This category refers to water bodies for drinking and domestic water use 2. სამეურნეო–საყოფაცხოვრებო (хозяйственно-бытовое, domestic) which is generally translated as domestic water use. This category includes surface water bodies used for recreation 3. water for fisheries (which is split in two - a) highest, first and b_ second category) According to these classification household water includes water for drinking.

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Water use category Household water Recreational Fisheries use water use43 Highest and first Second 20cm 10cm - Odor, taste Water must not have odor and taste of Water must not result in unusual odor higher than 1 unit intensity and taste in fish After chlorination Without treatment - of other treatment Temperature After discharge of wastewater, For water bodies where cold water temperature in water reservoir must lowing fish is found (Acipenseridae, not exceed by more than 5% Coregonidae) maximum allowable compared to the natural value temperatures in summer and winter are 20C and 5C respectively, for other water bodies 28C (in summer), 8C (in winter) pH Must be in 6.5-8.5 interval Water <1000mg/l, To comply with In accordance with taxation mineralization Incl. chlorides – requirement given 350mg/l; in section related sulphates – to taste (see 500mg/l above) Dissolved Must not be lower than oxygen 4mg/l 4mg/l 6mg/l 6mg/l Biological At 20C must not exceed oxygen demand 3mg/l 6mg/l 3mg/l 6mg/l Chemical Must not exceed oxygen demand 15 mg/l 30 mg/l - - Chemical Must not exceed maximum permissible limits substances Pathogens Must be free for pathogens, including viable helmint eggs, tenia oncosperes and viable cysts of pathogen organisms Toxicity - - At the point of discharge and control section of the river toxic impact must not be observed. Source: GoG. 2013. Technical Regulation on the Protection of Surface Water against Pollution. Tbilisi.

66. Groundwater (Drinking Water). Groundwater quality standards are not set under Georgian law. Drinking water quality standards are commonly used instead as assessment criteria for groundwater. Quality of drinking water is determined by the Technical Regulations for Drinking Water (approved by order No.58 of the GoG (15/01/2014).

Table 6: Drinking Water Quality Criteria Parameter Units Value Odour Unit 2 Taste Unit 2 Colour Grad 15 Turbidity Turbidity units (formazine) 3.5 or 2 or mg/l (kaolin) Metals and Miscellaneous Boron, B mg/kg 0.5 Arsenic, As mg/kg 0.01 Cadmium, Cd mg/kg 0.003 Copper, Cu mg/kg 2 Mercury, Hg mg/kg 0.006 Nickel, Ni mg/kg 0.07 Lead, Pb mg/kg 0.01

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Parameter Units Value Selenium, Se mg/kg 0.01 Zinc, Zn mg/kg 3 Total Petroleum mg/kg 0.1 Hydrocarbons, TPH Cyanide mg/kg 0.07 Sulphate mg/kg 250 Chloride mg/kg 250 pH pH value 6-9 Sodium, Na mg/kg 200 Microbiological characteristics Thermotolerant Bacteria in 100cm3 not allowed coliforms Total coliforms Bacteria in 100cm3 not allowed Mesophilic aerobes Colony forming units in < 50 and facultative 1cm3 anaerobes Colifagues Negative colonies in not allowed 100m3 Sulphitereducing Spores in 20cm3 not allowed clostridia Lamblias and cysts Cysts in 50dm not allowed Source: GoG. 2014. Technical Regulation on Drinking Water Standards. Tbilisi.

67. Effluent Discharge. In addition to the above, the IFC provides guidelines values for effluent discharge. The following table provides these values with which the project shall comply, for example relating to water discharge from construction camps.

Table 7: Indicative Values for Treated Sanitary Sewage Discharges Pollutant Unit Guideline Value pH pH 6-9 BOD Mg/l 30 COD Mg/l 125 Total Nitrogen Mg/l 10 Total Phosphorus Mg/l 2 Oil and Grease Mg/l 10 Total Suspended Solids Mg/l 50 Total Coliform Bacteria A-MPN / 100 ml 400 A –MPN = most probable number Source: IFC. 2007. General EHS Guidelines: Environmental/Wastewater and Ambient Water Quality. Washington, DC.

68. Surface Water Quality and Groundwater Project Standards. Baseline and construction phase water quality monitoring will be assessed against national standards.

69. Wastewater Discharge Project Standards. Wastewater discharge from construction sites and camps shall be assessed against IFC values (for any treated sanitary sewage discharge).

c. Noise Standards

70. Admissible noise standards of the IFC and Georgian national standards for residential areas are similar. The national standards for noise are set according to the Technical regulation— acoustic noise limits for rooms/premises in residential houses and public establishments (Document #300160070.10.003.020107, Date 15/08/2017) see Table

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8. For IFC noise impacts should not exceed the levels presented in Error! Reference source not found.or result in a maximum increase in background levels of 3 dB at the nearest receptor location off site. Note that Georgian standards refer to the allowable limits indoors, not at the building façade.

Table 8: Georgian Standards for Noise Levels Purpose/use of area and premises Allowable limits (dBA) Lday 23:00 – 08:00 08:00 – 19:00, Evening Lnight, Night Day 19:00-23:00 Educational facilities and library halls 35 35 35 Medical facilities/chambers of medical institutions 40 40 40 Living quarters and dormitories 35 30 30 Hospital chambers 35 30 30 Hotel/motel rooms 40 35 35 Trading halls and reception facilities 55 55 55 Restaurant, bar, I halls 50 50 50 Theatre/concert halls and sacred premises 30 30 30 Sport halls and pools 55 55 55 Small offices (≤100m3) – working rooms and premises 40 40 40 without office equipment Small offices (≤100m3) – working rooms and premises 40 40 40 without office equipment Conference halls /meeting rooms 35 35 35 Areas bordering with houses residential, medical 50 45 40 establishments, social service and children facilities (<6 story buildings) Areas bordering with houses residential, medical 55 50 45 establishments, social service and children facilities (>6 story buildings) The areas bordering with hotels, trade, service, sport 60 55 50 and public organizations Lday = day noise level; Lnight = night noise level. Note: 1. In case noise generated by indoor or outdoor sources is impulse or tonal, the limit must be 5dBA les than indicated in the table. 2. Acoustic noise limits given above are set for routine operation conditions of the ‘space’, i.e., windows and door are closed (exception – built-in ventilation canals), ventilation, air conditioning, lighting (in case available) are on; functional (baseline) noise (such as music, speech) not considered. Source: GoG. 2017. Technical Regulation on Acoustic Noise Limits for Premises in Residential Houses and Public Establishments. Tbilisi.

71. For workplace noise, the following IFC standards are applicable.

Table 9: IFC Work Environment Noise limits

Type of Work, workplace IFC General EHS Guidelines Heavy Industry (no demand for oral 85 Equivalent level Laeq,8h communication) Light industry (decreasing demand for 50-65 Equivalent level Laeq,8h oral communication) Source: IFC.2007. General EHS guidelines. Environmental/Noise Management. Washington, DC.

72. Project Noise Standards. For baseline monitoring, and construction and operational phase noise assessment, IFC guideline limits will be followed. For workplace noise, IFC guidelines shall be followed.

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73. Vibration Standards. The Georgian standards for vibration are designed for human comfort. These are shown in table below. Note that no Georgian standards for building damage exist. German Standard DIN 4150-3 will be followed during the construction phase.

Table 10: Georgian General Admissible Vibration Values in Residential Houses, Hospitals and Rest Houses, Sanitary Norms 2001

Average Allowable Values X0,Y0, Z0 Geometric Frequencies of Vibro-acceleration Vibro-speed Octave Zones (Hz) m/sec2 dB m/sec 10-4 dB 2 4.0 72 3.2 76 4 4.5 73 1.8 71 8 5.6 75 1.1 67 16 11.0 81 1.1 67 31.5 22.0 87 1.1 67 63 45.0 93 1.1 67 Corrected and 4.0 72 1.1 67 equivalent corrected values and their levels Note: It is allowable to exceed vibration normative values during daytime by 5 dB during daytime. In this table of inconstant vibrations, a correction for the allowable level values is 10dB, while the absolute values are multiplied by 0.32. Allowable levels of vibration for hospitals and rest houses must be reduced by 3dB. The German Standard DIN 4150-3 – Vibration in Buildings – Part 3: Effects on structures provides short term and long-term limits 44 for vibration at the foundation for various structures (see Table ). This standard is considered international best practice. Source: Ministry of Health, Labour and Social Affairs. 2001. Order of the Minister on the approval of Quality Standards of the Environment. Tbilisi.

Table 11: Guideline Values for Vibration Velocity to be Used When Evaluating the Effects of Short-term and Long-term Vibration on Structures Group Type of structure Guideline Values for Velocity (mm/s) Short-term Long-term At foundation Uppermost Uppermost Floor Floor Less than 10 Hz to 50 50 to All All 10 Hz Hz 100 Hz frequencies frequencies Buildings used for commercial purposes, 1 industrial buildings, 20 20 to 40 40 to 50 40 10 and buildings of similar design Residential dwellings 5 and buildings of 2 5 to 15 15 to 20 15 5 (105 dB) similar design and/or (105 dB) use Structures that because of their 3 particular sensitivity to 2.5 (99.0 3 vibration, do not 2 to 8 8 to 10 8 (100.5 dB) correspond to those dB) listed in Lines 1 or 2 and have intrinsic

44 Short-term vibrations are defined as those that do not occur often enough to cause structural fatigue and do not produce resonance in the structure being evaluated and long-term vibrations are all the other types of vibration.

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value (e.g. buildings that are under a preservation order) Source: German Standardization Committee.45

d. Soil Quality

74. Soil quality is currently assessed by Methodological Guides on Assessment of Level of Chemical Pollution of Soil (MG 2.1.7.004-02). However, these limits will soon be replaced as Georgia harmonizes its regulations with the EU and moves away from the outdated standards prepared while part of the . The national standards for soil quality are given in below along with the limits proposed by MOEPA and MOIDPLHSA.

Table 12: Soil Screening Values Compound Units Current Limit Proposed Limit Metals and Miscellaneous Arsenic, As mg/kg 2 30 Cadmium, Cd mg/kg 2* 0.5** – 1.0*** Copper, Cu mg/kg 3-132* 60**-100*** Mercury, Hg mg/kg 2.1 Nickel, Ni mg/kg 4-80* 60**- 80*** Lead, Pb mg/kg 32-130* 100** - 140*** Zinc, Zn mg/kg 23-220* 130** - 200*** Total Petroleum Hydrocarbons mg/kg 1000 - Cyanide mg/kg 0,2 - Volatile Organic Compounds Benzene mg/kg 0.3 0.05 Toluene mg/kg 0.3 - Total xylenes mg/kg 0.3 0.05 Semi Volatile Compounds Benzo(a)pyrene mg/kg 0.02-0.2 0.1 Isopropyl benzene mg/kg 0.5 - Pesticides Atrazine mg/kg 0.01-0.5 - Lindane mg/kg 0.1 - DDT (and its metabolite) mg/kg 0.1 0.075 Note: Sodium and neutral (clay and clayey) pH >5.5 – No screening value available, ** Light Soils, ***Other Soils. Source: MOEPA.

e. Electromagnetic Fields

75. For electromagnetic fields (EMF) exposure level, IFC guidelines on electric power transmission and distribution and the exposure limits to electric and magnetic fields

45 DIN 4150-3, Structural Vibration, Part 3: Effect of vibration on structures. DIN 4150-3 notes that “experience has shown that if these values are complied with, damage that reduces the serviceability of the building will not occur. If damage nevertheless occurs, it is to be assumed that other causes are responsible. Exceeding the value in the table does not necessarily lead to damage”.

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published by the Intrernational Commision on Non-Ionizing Radiation Protection (ICNIRP) will be followed. The limits are provided in the tables below.

Table 13: ICNIRP Exposure Limits for General Public Exposure to Electric and Magnetic Fields Frequency Electric Field (V/m) Magnetic Field (µT) 50 Hz 5000 100 60 Hz 4150 83 Source: ICNIRP (1998): Guidelines for limiting exposure to time-varying electric, magnetic and electromagnetic fields (up to 300 GHz).

Table 14: ICNIRP Exposure Limits for Occupational Exposure to Electric and Magnetic Fields Frequency Electric Field (V/m) Magnetic Field (µT) 50 Hz 10,000 500 60 Hz 8300 415 Source: ICNIRP (1998): Guidelines for limiting exposure to time-varying electric, magnetic and electromagnetic fields (up to 300 GHz).

f. State Forest Fund

76. According to the Resolution N.242 of the GoG on Approval of Rules for Forest Use, Article 271 State forest land (or State Forest Fund [SFF]) may be used for the purposes of construction of motorways, as well as for other activities which are deemed as special use of forest lands. Article 27 states that if the activity that is deemed as special use of forest land and is subject to Ecological Expertise, then the Client is obliged to apply to remove all trees identified in the affected SFF area from the SFF register or “de-list” them before they can be cut. The decision to de-list trees and plants from the State Forest Fund of Georgia is issued by the National Forest Agency excepting the vegetation species protected by the Red List of Georgia. A decision to de-list trees and plants from the Red List of Georgia is made by MOEPA. The client must apply to the MOEPA in writing regarding the presence of the Red- Listed species in the project area.

g. Asbestos Management

77. Asbestos management in Georgia is regulated by Decree of Minister of Labor, Health and Social Affairs of Georgia on Adoption of Hygienic Requirements for Working with Different Types of Radiation Sources, Industrial Materials, and Instructions” (14/04/2004), which sets out the rules for dealing with asbestos and asbestos-containing materials (ACM), in particular in packaging, warehousing and transportation.

78. World Bank Group and IFC Environmental, Health and Safety (EHS) Guidelines (2007) and Performance Standard on Environmental and Social Sustainability (2012) states that: “ACM should be avoided in new constructions, including construction for disaster relief. In reconstruction, demolishing, and removal of damaged infrastructure, asbestos hazards should be identified, and a risk management plan adopted that includes disposal technics and end-off-life sites.” In addition to that, it is required that all workers should receive special trainings on all relevant aspects.

E. ADB Requirements

79. ADB safeguard policies require that:

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(i) adverse impacts of projects on the environment and affected people be avoided; (ii) where possible—minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and (iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

80. The policies apply to all ADB-financed projects, including private sector operations, and to all project components. The implementation processes as follows: (i) screening and scoping of the main issues start as soon as potential projects for ADB financing are identified and continue throughout the project cycle; (ii) impacts are assessed, safeguard plans summarizing mitigation measures, monitoring program, and institutional arrangements are prepared, and arrangements are made to integrate safeguards into project design and implementation; (iii) affected people are consulted during project preparation and implementation and information is disclosed in a form, manner, and language accessible to them; and (iv) safeguard plans are disclosed to the general public and the information is updated at various stages in the project cycle.

81. ADB’s safeguard policies require that both ADB’s and developing member countries’ safeguard requirements are complied with.

82. Applicable standards for air emissions for general application, ambient air condition at property boundary for general purpose, limits for process wastewater, domestic sewage and contaminated storm water discharges to surface water and ambient noise levels are given above in Table 2.2 & 2.3 and are based on the standards described in the World Bank Group (IFC) EHS Guidelines.

a. ADB’s Safeguard Policy Statement, 2009

83. The ADB’s Safeguard Policy Statement (2009) requires that environmental considerations be incorporated into ADB funded projects to ensure that the project will have minimal environmental impacts and be environmentally sound. Occupational health & safety of the local population should also be addressed as well as the project workers as stated in ADB’s Safeguard Policy Statement (2009). A GRM to receive application and facilitate resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental performance is also established.

84. All loans and investments are subject to categorization to determine environmental assessment requirements. Categorization is to be undertaken using REA checklists, consisting of questions relating to (i) the sensitivity and vulnerability of environmental resources in project area, and (ii) the potential for the project to cause significant adverse environmental impacts. Projects are classified into one of the following environmental categories:

(i) Category A: A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment (EIA) is required.

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(ii) Category B: A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An IEE is required. (iii) Category C: A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed. (iv) Category FI: A proposed project is classified as category FI if it involves investment of ADB funds to or through a financial intermediary.

b. ADB’s Access to Information Policy 2018

85. ADB’s new Access to Information Policy, reflects the ADB’s ongoing commitment to transparency, accountability, and participation by stakeholders. The policy contains principles and exceptions to information sharing with external stakeholders, led by a new overarching principle of “clear, timely, and appropriate disclosure.”

c. ADB’s Accountability Mechanism Policy 2012

86. The objectives of the Accountability Mechanism are providing an independent and effective forum for people adversely affected by ADB-assisted projects to voice their concerns and seek solutions to their problems, and to request compliance review of the alleged noncompliance by ADB with its operational policies and procedures that may have caused, or is likely to cause, them direct and material harm. The Accountability Mechanism is a “last resort” mechanism.

F. IFC Performance Standards

87. IFC applies the Performance Standards to manage social and environmental risks and impacts and to enhance development opportunities in its private sector financing in its member countries eligible for financing. The Performance Standards are also applied to the projects in emerging markets. Together, the eight Performance Standards as bulleted below, establish standards that the proponent is to meet throughout the project:

(i) Performance Standard 1: Social and Environmental Assessment and Management System; (ii) Performance Standard 2: Labor and Working Conditions; (iii) Performance Standard 3: Pollution Prevention and Abatement; (iv) Performance Standard 4: Community Health, Safety and Security; (v) Performance Standard 5: Land Acquisition and Involuntary Resettlement; (vi) Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource; (vii) Performance Standard 7: Indigenous Peoples; and (viii) Performance Standard 8: Cultural Heritage objectives have been set in the IFC performance standards to achieve sustainable development.

88. The objectives of Performance Standards are given below: (i) To identify and assess social and environment impacts, both adverse and beneficial, in the project's area of influence; (ii) To avoid, or where avoidance is not possible, minimize, mitigate, or compensate for adverse impacts on workers, affected communities and the environment; and (iii) To promote improved social and environment performance of companies through the effective use of management systems.

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G. Equator Principles

89. The Equator Principles are a set of guidelines, promoted by the IFC that address the environmental and social issues associated with major development projects worldwide. They provide a common baseline and framework for the implementation of internal environmental and social procedures and standards for project financing activities across all industries. These are: (i) Principle 1: Review and Categorization (of projects) (ii) Principle 2: Social and Environmental Assessment (iii) Principle 3: Applicable Social and Environmental Standards (iv) Principle 4: Action Plan and Management System (v) Principle 5: Consultation and Disclosure (vi) Principle 6: Grievance Mechanism (vii) Principle 7: Independent Review (viii) Principle 8: Covenants (ix) Principle 9: Independent Monitoring and Reporting; and (x) Principle 10: Equator Principles Financial Institutions (EPFI) Reporting.

H. International Conventions and Agreements 90. There are several important international environmental treaties that have been signed by Georgia and may have relevance to the project. The major protocols and ratification dates by Georgia are given in below Table 15.

Table 15: International Agreements and Treaties Date Title Status in Date Georgia Natural environment 1961 International Convention for The Protection of New Varieties of Entry into 2008 Plants force 1971 Ramsar Convention on Wetlands of International Importance Entry into 1997 Especially as Wildfowl Habitat force 1973 Convention on International Trade in Endangered Species of Entry into 1996 Wild Fauna and Flora (CITES) force 1991 Agreement on The Conservation of Populations of European Entry into 2002 Bats force 1995 Agreement on The Conservation of African-Eurasian Migratory Entry into 2001 Water birds force 1997 International Plant Protection Convention (1997 Revised Text) Entry into 2007 force 1983 Convention on the Conservation of Migratory Species of Wild Entry into 2000 Animals (Bonn Convention) (CMS) force 1992 Rio Convention on Biological Diversity Entry into 1994 force 2000 Cartagena Protocol on Biosafety to the Convention on Biological Entry into 2009 Diversity force 2000 European Landscape Convention Entry into 2011 force 2008 Convention on the Conservation of European Wildlife and Entry into 2010 Natural Habitats (Bern) force Environmental pollution, waste 1997 Joint Convention on the Safety of Spent Fuel Management and Entry into 2009 on the Safety of Radioactive Waste Management force 1998 Rotterdam Convention on the Prior Informed Consent Procedure Entry into 2007 for Certain Hazardous Chemicals and Pesticides in International force Trade

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Date Title Status in Date Georgia 1989 Basel Convention on the Control of Transboundary Movements Entry into 1995 of Hazardous Wastes and their Disposal force 2001 Stockholm Convention on Persistent Organic Pollutants Entry into 2007 force Climate 1994 UN Framework Convention on Climate Change (UNFCCC) Entry into 1994 force 1985 Vienna Convention for the Protection of the Ozone Layer Entry into 1996 force 1987 Montreal Protocol on Substances that Deplete the Ozone Layer, Entry into 1996 (and its London, Copenhagen, Montreal and Beijing force Amendments 2000 and 2011) 1997 Kyoto Protocol to UNFCCC Entry into 2005 force 1999 Geneva Convention on Long‐Range Transboundary Air Pollution Entry into 1999 force Cultural heritage 1954 European Cultural Convention Entry into 1997 force 1972 Paris Convention Concerning the Protection of the World Cultural Entry into 1992 and Natural Heritage force 1982 European Convention on the Protection of the Archaeological Entry into 2000 Heritage force 1985 Convention for the Protection of the Architectural Heritage of Entry into 2000 Europe force 2005 Council of Europe Framework Convention on the Value of Entry into 2011 Cultural Heritage for Society (Faro convention) force Public participation and information accessibility 1998 Aarhus Convention on Access to Information, Public Participation Ratified 2000 in Decision‐Making and Access to Justice in Environmental Matters Labor issues 1930 Forced Labor Convention Entry into 1993 force 1936 Holidays with Pay Convention Entry into 1993 force 1949 Freedom of Association and Protection of the Right to Organize Entry into 1999 Convention force 1948 Right to Organize and Collective Bargaining Convention Entry into 1993 force 1950 European Convention for the Protection of Human Rights and Entry into 1999 Fundamental Freedoms force 1951 Equal Remuneration Convention Entry into 1993 force 1957 Abolition of Forced Labor Convention Entry into 1996 force 1958 Discrimination (Employment and Occupation) Convention Entry into 1993 force 1962 ILO Social Policy (Basic Aims and Standards) Convention Entry into 1997 force 1964 Employment Policy Convention (Geneva) Entry into 1993 force 1973 Geneva Convention concerning Minimum Age for Admission to Entry into 1996 Employment force 1975 Human Resources Development Convention Entry into 1993 force 1978 Labor Relations (Public Service) Convention Entry into 2003

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Date Title Status in Date Georgia force 1997 Employment Service Convention Entry into 2002 force 1997 Private Employment Agencies Convention Entry into 2002 force 1999 Worst Forms of Child Labor Convention Entry into 2002 force

I. Comparison of ADB and National Requirements

91. The environmental assessment of the project will need to satisfy the requirement of both the GoG and ADB. A harmonized safeguard framework is developed for conducting EIA study of the project. The framework is given below in Table 16.

Table 16: Comparison of ADB and GoG Legislation Requirements Aspect ADB GoG Harmonized Framework Environmental ADB’s SPS (2009) sets out the policy objectives, Environmental assessment and permitting The project shall comply with and Social scope and triggers, and principles for three key procedure in Georgia are set out in the lender’s and national Policy and safeguard requirement areas: Environmental Assessment Code. requirements. Regulations (i) Environmental safeguards, (ii) Involuntary resettlement safeguards, and (iii) Indigenous people’s safeguards Screening Project screening and categorization at the earliest Project screening is done at early stage of The project is categorized as stage of project. Four categories are defined category the project. Environmental Assessment category A. A, B, C, FI. Code provides list of A and B category Rapid environmental assessment checklist is used for activities. categorization. For category B project need of EIA is defined based on the scoping procedure by MOEPA. Alternatives Examination of financially and technically feasible Alternative assessments are to be carried Assessment of alternatives will alternatives to the project location, design, technology out for the project location and design. include the location and and components, their potential environmental and design, and also no project social impacts. Consider no project alternative. alternative. EIA Report For category A projects EIA (that includes EMP EIA report is required for Annex 1 listed The EIA and EMP reports will describing mitigation and monitoring issues) is projects. For Annex 2 project, need of EIA follow the table of contents obligatory. For category B projects – IEE is required is decided based on the scoping procedure. proposed by ADB SPS (2009). to determine whether significant environmental The content of the EIA report is structured The report for obtaining impacts warranting an EIA are likely. If an EIA is not so to cover requirements indicated in the Environmental Decision from needed, the IEE is regarded as the final Environmental Assessment Code. The the MOEPA will consider environmental assessment report. Guidelines and the EMP is a part of the EIA document. national regulatory outline of an EIA report are provided in SPS (2009). requirements.

Public Carry out meaningful consultation with affected Publication of information in national and Consultations will be carried Consultations people and facilitate their informed participation. regional mass-media. Arrange two public out with the stakeholders,

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Aspect ADB GoG Harmonized Framework and public Involving stakeholders, project- affected people and meetings – one at the scoping stage, directly and in-directly affected meetings concerned NGOs early in the project preparation and another not later that at 55th date from people, NGOs throughout the ensure that their views and concerns are made submission of the draft EIA report to project cycle and consider their known and understood by decision makers and MOEPA. All stakeholders are invited for the views in project design and considered. Continue consultations with stakeholders meetings. safeguard plan. Questions and throughout project implementation as necessary to One two one meetings and consultations concerns raised during public address environmental assessment- related issues. with stakeholders during EIA process. consultations held will be Minimum two consultations are required. Consultation not later than 60 days from the considered and addressed in Presence of ADB representative at official meetings date of publication. the EIA. with stakeholders is obligatory. Public Draft EIA will be published in ADB website for 120 The scoping document is available for Draft EIA report (English and Disclosure days before project approval by the Board. public review for 45 days before public Georgian) will be published in consultations. ADB and roads department websites. The copies of the draft EIA report will be made available with the municipal offices. ADB = Asian Development Bank, EIA = environmental impact assessment, EMP =environmental management plan, GoG = Government of Georgia, IEE = initial environmental examination, MOEPA = Ministry of Environmental Protection and Agriculture, NGO = non-government organization, SPS = Safeguard Policy Statement.

Source: Technical Assistance-9790 GEO.

III. PROJECT DESCRIPTION

A. Project Overview

92. The project will finance the establishment of at least two sector-based Skills Hubs — institutes that deliver high quality and relevant training, as well as display sector leadership; demonstrate best practice, excellence, and innovation; and support other VET institutes in East and West Georgia. A skills hub is a facility or entity that provides leadership, effective management, best practices in employer and international partnerships, support to other institutions in curricula development, teacher training and student placement, support and training for one or more specific sectors with a focus on innovation and technology. Centers of excellence are used extensively in several countries as a model to improve the quality and relevance of VET, including the Kyrgyz Republic, the People’s Republic of China, and Uzbekistan.

93. Based on the socio-economic criteria, Skills Hubs will be established in existing VET institutes in Kutaisi (College Iberia in partnership with Kutaisi State University) and Telavi (College Prestige in partnership with Telavi State University). They will operate as VET colleges, as defined by the VET law, with a network of international and national partners, including public and private colleges and VET providers, public and private secondary schools, public and private universities, and other public entities. The MOESCS indicated its desire to include a third Skills Hub in the program—College Ikarosi, a public hospitality and tourism provider based in Tbilisi. It has been agreed with the GoG that a third Skills Hub could be explored during project implementation, subject to feasibility and availability of funding. Under proposed PPP arrangements, the GoG would outsource the management of public VET institutes or departments within those institutes to the private sector (designed layouts of the skills hubs are in Annex 2).

Table 17: Skills Hubs: Locations, Partners and Sectors Skills Hub Location Institute Partners Sectors 1 Kutaisi, Imereti College Iberia Kutaisi Electronics engineering, information (West Georgia) State and communications technology, University medical and pharmaceutical production, furniture production and carpentry 2 Telavi, Kakheti College Prestige Telavi State Information and communications (East Georgia) University technology, services (hospitality and tourism), fashion and design, water engineering, furniture production and carpentry Source: Technical Assistance-9790 GEO.

94. Skills hubs (VET institutes and partners) are selected based on several criteria: (i) Location—adjacent to growth nodes set out in the Regional Development Programme (2018-2021); (ii) Sector focus of programs of VET institutes and skills hubs partners; (iii) Capacity of VET institutes and partners to deliver programs; (iv) Planned GoG economic interventions and MOESCS priorities; (v) Assessment of infrastructure, staff capacity and equipment—suitability for upgrading; and (vi) Potential for outreach to ethnic minority populations.

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95. Skills Hubs will benefit from improved facilities, upgraded equipment, and centers for entrepreneurship, soft skills and languages, teacher training, and student placement. The program will also (i) develop new or revise existing CBTA programs at NQF Level 4 and Level 5; (ii) train Skills Hubs managers and support the development of institute business plans; (iii) identify and implement income generating activities, and other strategies to diversify their revenue base; and (iv) train teachers in technical, pedagogical, entrepreneurship, and language skills. Further, the program will support Skills Hubs to develop linkages with domestic and international partners, including firms, VET institutes, higher education institutions, and schools.

96. Skills Hubs will offer at least 20 competency-based (long) programs linked to the NQF in 7 priority economic sectors (Table 18). These were selected based on several factors: (i) address critical skills gaps, (ii) forward looking qualifications, skills that are demanded in the Georgian labor market by technologically advanced and export-oriented companies, (iii) support for waged employment or self-employment, and (iv) skills that are increasingly demanded in the global market. The selection process included consultations with sector representatives, study of several classifications of occupations and analysis of international experience and national qualifications system.

Table 18: Proposed Programs for Skills Hubs Electronic Engineering NQF Level 1 Automation and robotic technician 5 2 Electronics engineering and equipment technician 5 3 Electronic appliances installer and repairer 4 4 Internet of Things and Smart appliances 4 5 Laboratory specialist 5 Information and Communications Technology 6 Graphic design 2D and 3D (including motion graphics and animation) 4 7 ICT network administrator 5 8 Software developer 5 9 Web technologies (back-end, front-end, coding, etc.) 4 10 Mobile application developer 5 Medical and Pharmaceutical Production 11 Pharmaceutical and medical production technician 4 12 Medical information and communications technology application 5 technician 13 Medical electronics technician 4 Services (Hospitality and Tourism) 14 Hotel management 5 15 Culinary arts 4 16 Tour operator 5 17 Tour guide 4 18 Event specialist and manager 5 Fashion and Design 19 Fashion design technician 5 20 Decorative textiles and apparel 4 21 Tailor 4 22 Sewing industry technologist (quality manager, supervisor) 4 Furniture Production and Carpentry 22 Wooden construction design technician 4

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24 Wood processing machines programming and operation technician 4 25 Carpenter of construction products 4 Water Engineering 26 Supervising construction of water systems and networks 5 27 Plumbing (outdoor) 4 Source: Technical Assistance-9790 GEO.

97. All programs offered by Skills Hubs will employ CBTA approach to ensure that graduates have the practical skills and competencies that allow them to swiftly integrate into the workforce. Some of the qualifications offered by Skills Hubs will be internationally recognized to provide opportunities for graduates to work within and outside Georgia. Programs will include increased focus on work-based training, and enhanced linkages with private sector firms. Based on physical infrastructure and equipment assessments of the proposed Skills Hub, the project will upgrade workshops and classrooms, and undertake general renovations of facilities where required. The purpose is to ensure an upgraded physical feel to the entire institute.

98. The selection process was informed by consultations with sector representatives, study of several prominent systems of classifications of occupations such as the International Standard Classification of Occupations; Standard Occupational Classification; European Skills, Competences, Qualifications and Occupations; analysis of international experience; and NQF. Consultations were held with Enterprise Georgia, Georgia's Innovation and Technology Agency, Georgian Chamber of Commerce and Industry, Georgia Building Authority, European Business Association Georgia, American Chamber of Commerce in Georgia, Hualing Free Industrial Zone, Sustainable Tourism Development in the Central Asia Regional Economic Cooperation Program Region as well as flagship private companies. In each sector, the profile of qualifications was identified, and priorities were assigned to those with the highest growth potential.

99. With VET in School component, the project will introduce VET programs in general secondary schools to widen access and participation to VET across almost all regions of Georgia, including Adjara, Imereti, Kakheti, , Mtskheta-Mtianeti, Racha-Lechkhumi and Kvemo Svaneti, Samegrelo-Zemo Svaneti, Samtskhe-Javakheti, Shida Kartli (Map of the project locations is given in Figure 1). This reform area will (i) refurbish 20 secondary education schools; (ii) build and equip 40 workshops (2 per school); (iii) develop 10 formal CBTA VET programs in priority economic sectors; (iv) train 40 school management staff in VET management and quality assurance (including school principal and VET coordinator for each school); (v) train around 100 teachers in technical and pedagogical skills; and (vi) finance salaries for VET coordinators during program implementation. It will support general education institutions to build capacity to offer full scale vocational education programs at NQF levels 3 and 4, targeting basic and secondary education graduates.46

46 Basic education covers grades 6-9 while secondary education covers grades 10-12 grades.

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Figure 1: Locations of VET Secondary Schools

Source: Technical Assistance-9790 GEO.

100. A two-stage selection was applied for the selection of schools. The schools were selected in municipalities, with no other VET provision (in exceptional cases, because of accessibility for specific target groups: ethnic minorities, mountainous villages). The selection of municipalities responded to needs of geographical accessibility, social and economic criteria that also integrates gender and social inclusion considerations. At least 15% of the schools selected are in areas with ethnic minority population, near Administrative Boundary Lines, or serving internally displaced person settlements.

101. Within these priority municipalities, 28 schools have been short-listed and later, 20 priority schools were identified (Table 19) based on the following criteria:

(i) Utilization potential of the area covering (a) number of students at basic and secondary education levels, (b) level of absorptive capacity of the target population; (c) level of outward migration in last ten years; (ii) Availability of adequate facilities encompassing (a) quality of infrastructure; (b) availability of space for extra labs and workshops; (c) geographic accessibility— transport network and outreach potential; and (d) accessibility for persons with disabilities; and (iii) Lastly, among the schools selected by the criteria above, priority was given to schools with evidenced prior experience in VET delivery, including those involved in the Work Skills Development Project by the MOESCS.

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Table 19: Proposed Project Schools Imereti Region 1 Chiatura Public School #1 2 Vani Public School #1 3 Khoni Public School #3 4 Samtredia Public School #11 5 Terjola Public School #2 6 Ilia Sachkhere Public School #2 7 Kharagauli Public School #2 Samegrelo-Zemo Svaneti Region 8 Abasha Public School #1 9 Ramin Dikhaminjia Chkhorotsku Public School #1 10 Tsalenjikha Public School #1 Racha-Lechkhumi Region 11 Simon Skhirtladze Oni Public School Adjara Region 12 Keda Public School Kakheti 13 Akhmeta Municipality Village Duisi Public school 14 Sighnaghi Municipality Tsnori Public School #1 Kvemo Kartli Region 15 Arip Aliev Village Talaveri Public School #1 16 Levan Devdariani Gardabani Public School #1 Samtskhe-Javakheti Region: 17 Akhaltsikhe Municipality Vale Public School #1 18 Aspindza Public School Building I Mtskheta Mtianeti Region: 19 Mtskheta Municipality Village Mukhrani Public School #1 Shida Kartli Region 20 Kareli Public School #1 Source: Technical Assistance-9790 GEO.

102. VET program areas in schools were selected considering several factors ranging from (i) appropriateness for the age group; (ii) future implications of the professions and technological advancements; (iii) relevance to the service area and applicability of the skills; and (iv) interest of the school and potential students.

Table 20: Proposed Programs for VET Schools

Proposed Programs NQF Level 1 Electronic equipment technician 4 2 Installer/repairer heating, air conditioning, and refrigeration 4 3 Repairer of electronic appliances (including mobiles, computers, TV, etc.) 4 4 Graphic designer (2D, 3D, AutoCAD, etc.) 4 5 Web developer (back-end, front-end, coding, etc.) 4 6 Information technology 3 7 Cook/culinary arts 3 8 Sewer tailor (industry and homework), including embroidery, knitting, felting 3 9 Enamel-making 3

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Proposed Programs NQF Level 10 Woodworker/cabinet maker/CNC machine operator (includes carpentry and 3 furniture maker) AutoCAD = Automatical computer aided design, CNC = computer numeric controlled. Source: Technical Assistance-9790 GEO.

103. The project will also fund other important directions for the VET sector development, including (i) income-generation activities by VET providers, (ii) development of soft skills and language competence, (iii) development and pilot career advisory services in general secondary education and skills hubs, (iv) implementation of short-term VET programs for women and vulnerable group, (v) development of a VET gender policy and guidelines (vi) promoting image of VET, (vii) establishment of SSOs in priority economic sectors, (viii) provision of high- quality specialized training in priority sectors, and (ix) private management of public VET institutes.

B. Project Need

104. Georgia’s VET system requires a significant improvement in its quality and relevance and a broadening of access. The program will support the government in removing critical constraints in line with the Unified Strategy for Education and Science 2017−202147, which commits the government to increasing the number of skilled graduates by (i) aligning VET with labor market needs, (ii) ensuring broader access to VET, and (iii) promoting VET as a skills development pathway. Subprogram 1 begins the task of introducing concrete reforms in line with the goals outlined in the Unified Strategy, such as implementing a revised NQF; increasing access by launching a formal system of adult training; strengthening the governance of VET institutes and the system as a whole; improving teaching; reinforcing quality assurance; stepping up spending on VET; boosting the engagement of the private sector in the development of occupational standards and work-based learning; introducing PPPs; and extending the government’s voucher program to students enrolled in priority programs of private VET institutes. The second subprogram builds on the reforms of the first one in terms of teaching improvements, private sector engagement, PPPs, and broader access. It also deepens reforms in areas such as the development of a gender policy.

105. The program is aligned with the government’s key economic strategies: (i) Georgia 2020,48 the country’s overarching socioeconomic strategy, which names skills enhancement as a key socioeconomic development goal; (ii) the Government Programme 2019−2020,49 which lists education and economic growth as priority reform areas; and (iii) the Regional Development Programme of Georgia 2018−2021, which prioritizes human resources. 50 The country partnership strategy, 2019–2023 of the Asian Development Bank for Georgia includes the development of human resources through support for education.51 The proposed program is listed in ADB’s country operations business plan, 2020−2022.52 It supports three of ADB’s seven operational priorities under its Strategy 2030: (i) reducing poverty and inequalities, (ii)

47 Government of Georgia, Ministry of Education, Science, Culture and Sport. 2017. Unified Strategy for Education and Science 2017−2021. Tbilisi. 48 Government of Georgia. 2014. Socio-economic Development Strategy of Georgia: “GEORGIA 2020”. Tbilisi. 49 Government of Georgia. 2019. Government Programme 2019−2020. Tbilisi. 50 Government of Georgia. 2018. Regional Development Programme of Georgia 2018−2021. Tbilisi. 51 ADB. 2019. Country Partnership Strategy: Georgia, 2019–2023—Developing Caucasus’s Gateway to the World. Manila. 52 ADB. 2019. Country Operations Business Plan: Georgia, 2020–2022. Manila.

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accelerating progress in gender equality, and (iii) strengthening governance and institutional capacity.53 The proposed program will also complement the planned Sustainable Water Supply and Sanitation Sector Development Program by providing skilled trainees in water engineering, 54 while its focus on tourism complements current technical assistance to the tourism industry.55

C. Scope of Work

106. Modern Skills for Better Jobs Sector Development Program has three main areas of implementation i.e.,

(i) Quality and relevance of VET in priority economic sectors improved. This reform area includes: upgrade at least 2 colleges into skills hubs in East and West Georgia in 7 priority economic sectors; support the 2 skills hubs to introduce IGAs, strengthen short-term training for vulnerable groups and women, career guidance and distance teaching/learning services; and provision of soft skills training (including language skills and entrepreneurship).

(ii) Access to, and inclusiveness of, the VET system increased. This reform area includes: equip and strengthen 20 general education institutions in municipalities with no other VET provision across Georgia to develop and deliver VET, career guidance services and soft skills (including language skills and entrepreneurship) training; develop and implement short-term VET programs for women and vulnerable groups; develop a VET gender policy and guidelines; conduct social marketing campaigns to improve the image of VET, and encourage more female participation in non-traditional skills areas.

(iii) VET institutional framework strengthened through increased private participation in VET. This reform area includes the following activities: strengthen the proposed Skills Authority; establish and support SSOs in the seven priority sectors to develop and apply valid labor market intelligence systems and develop and revise occupational standards; finance specialized training targeting internationally recognized programs for at least 500 individuals; pilot private management of public VET institute model in at least 1 skills hub (or a department or school within).

107. Construction activities are mainly confined under the first and second program reform area, in the frame of which the program will upgrade 2 colleges into skills hubs in 7 priority economic sectors and equip and strengthen 20 general education institution schools with no other VET provision across Georgia. Activities considered under these reform areas include construction and rehabilitation of existing facilities and building and equipping of new workshops.

53 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 54 ADB. 2020. Georgia: Sustainable Water Supply and Sanitation Sector Development Program. Manila. 55ADB. 2019. Regional: Sustainable Tourism Development in the Central Asia Regional Economic Cooperation Region. Manila (TA 9776-REG).

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108. Summary of the proposed programs and civil works is provided in the table below.

Table 21. Summary of Proposed Programs and Civil Works Name City/Town/Vil Region Proposed List of Workshop Civil Work Type lage Program Workshops Location Pre-selected skills hubs College Iberia Kutaisi Imereti Electronics Computer room Existing building Rehabilitation engineering, information and Equipped New building New communications workshop construction Kutaisi State Kutaisi Imereti technology, medical Available rooms Existing building Rehabilitation University and pharmaceutical area for production, Pharmaceutical furniture production workshops 2nd and carpentry floor Area of corridors Existing building Rehabilitation and toilets on the 1st floor College Telavi Kakheti Information and Existing Existing building Rehabilitation Prestige communications classrooms technology, Equipped New building Construction services (hospitality workshop Telavi State Telavi Kakheti and tourism), Available rooms Existing building Rehabilitation University fashion and design, area for fashion water engineering, design furniture production workshops/ and carpentry Area of corridors Existing building Rehabilitation and toilets Pre-Selected Schools Graphic designer Computer room New (2D, 3D, AutoCAD, for 12 students New building Construction etc.) NQF 4 FabLab Samegrelo- Woodworker/cabin Abasha Public Abasha Zemo et maker/CNC School #1 Svaneti Machine Operator Workshop for 15 New New building (includes furniture students Construction maker and carpentry) NQF3 Repairer of electronic appliances Workshop for 15 Akhaltsikhe (including mobiles, Municipality Samtskhe- students New Akhaltsikhe computers, TV and New building Vale Public Javakheti other household Construction School #1 appliance) Cook Culinary art Workshop for 15 NQF 3 students Repairer of electronic appliances Akhmeta Workshop for 15 (including mobiles, Municipality students New Akhmeta Kakheti computers, TV and New building Village Duisi Construction other household Public school appliance) Cook Culinary art Workshop for 15 NQF 3 students Electronic Workshop for 15 Aspindza Equipment Existing Building Rehabilitation Samtskhe- students Public School Aspindza Technician NQF 4] Javakheti Building Enamel making Workshop for 15 New New building NQF 3 students Construction Arip Alievi Information Computer room Bolnisi Bolnisi Kvemo Kartli technology support Existing Building Rehabilitation for 12 students Municipality NQF3 (ICT)

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Village Talaveri Sewer / tailor Public School (industry and #1 homework), Workshop for 15 New including New building students Construction embroidery, knitting, felting NQF3 Installer / repairer of heating, Workshop for 15 refrigerator, and air Existing Building Rehabilitation students conditioning) NQF 4 Chiatura Public Sewer / tailor Chiatura Imereti School #1 (industry and homework), Workshop for 15 including Existing Building Rehabilitation students embroidery, knitting, felting NQF3 Installer / repairer Ramin of heating, Workshop for 15 New Dikhaminjia Samegrelo- refrigerator, and air New building students Construction Chkhorotsku Chkhorotsku Zemo conditioning) NQF Public School Svaneti 4 #1 Cook Culinary art Workshop for 15 New New building NQF 3 students Construction Web technologies Computer room little Existing Building (back-end, front- for 12 students rehabilitation end, coding, etc.), Photo studio New building Levan NQF 4 Devdariani Sewer / tailor Gardabani Gardabani Kvemo Kartli (industry and New Public School homework), Workshop for 15 Construction #1 including New building students embroidery, knitting, felting NQF3 Repairer of electronic appliances Workshop for 15 New (including mobiles, New building Kareli Public students Construction Kareli Shida Kartli computers, TV and School #1 other household appliance), Cook Culinary art Workshop for 15 New New building NQF 3 students Construction Information Computer room technology support Keda Public for 12 students New Keda Achara NQF3 (ICT) New building School Construction Cook Culinary art Workshop for 15 NQF 3 students Repairer of electronic appliances Workshop for 15 (including mobiles, Existing Building Rehabilitation students computers, TV and other household Kharagauli appliance Public School Kharagauli Imereti #2, Tetratskaro Woodworker/cabin Building et maker/CNC Machine Operator Workshop for 15 Existing Building Rehabilitation (includes furniture students maker and carpentry) NQF3

Village Mtskheta- Information Computer room New Mukhrani New building Mukhrani Mtianeti technology support for 12 students Construction

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Public School NQF3 (ICT) #1 (ii building) Sewer / tailor (industry and homework), Workshop for 15 including students embroidery, knitting, felting NQF3

Information Computer room technology support Existing Building Rehabilitation for 12 students NQF3 (ICT) Simon Woodworker/cabin Racha- Skhirtladze Oni Oni et maker/CNC Lechkhumi Public School Machine Operator Workshop for 15 New New building (includes furniture students Construction maker and carpentry) NQF3 Web technologies Computer room Ilia (back-end, front- for 12 students Existing Building Rehabilitation Chavchavadze end, coding, etc.), Photo studio Sachkhere Sachkhere Imereti NQF 4 Public School Cook Culinary art Workshop for 15 #2 Existing Building Rehabilitation NQF 3 students Graphic designer Computer room Samtredia (2D, 3D, AutoCAD, for 12 students New Public School Samtredia Imereti etc.) NQF 4 FabLab New building Construction #11 Cook Culinary art Workshop for 15 NQF 3 students Electronic Workshop for 15 New Equipment New building students Construction Technician NQF 4] Sighnaghi Woodworker/cabin Municipality Sighnaghi Kakheti et maker/CNC Tsnori Public Machine Operator Workshop for 15 New School #1 New building (includes furniture students Construction maker and carpentry) NQF3

Web technologies Computer room (back-end, front- New for 12 students New building end, coding, etc.), Construction NQF 4 Photo studio Terjola Public Terjola Imereti Woodworker/cabin School #2 et maker/CNC Machine Operator Workshop for 15 New New building (includes furniture students Construction maker and carpentry) NQF3 Repairer of electronic appliances Workshop for 15 (including mobiles, students computers, TV and other household Tsalenjikha Samegrelo- appliance), New Public School Tsalenjikha Zemo New building Sewer / tailor Construction #1 Svaneti (industry and homework), Workshop for 15 including students embroidery, knitting, felting NQF3 Electronic Vani Public Workshop for 15 Vani Imereti Equipment Existing building Rehabilitation School #1 students Technician NQF 4]

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Sewer / tailor (industry and homework), Workshop for 15 including students embroidery, knitting, felting NQF3 Web technologies Computer room Existing building Rehabilitation (back-end, front- for 12 students Irakli Abashidze end, coding, etc.), Existing auxiliary Khoni Public Khoni Imereti Photo studio NQF 4 building School #3 Rehabilitation Cook Culinary art Workshop for 15 Existing auxiliary NQF 3 students building Source: Technical Assistance-9790 GEO.

109. To build the capacity of skills hubs and the schools, the project includes provision of skills hubs and school workshops with various types of equipment. General list of the proposed equipment and estimate value is provided below.

Table 22: List of Goods and Estimated Values Estimated Package General Procurement Bidding Value (in Review Comments Number Description Method Procedure $) G04 Equipment for 2 1,300,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs, 2 universities and Advertising Type: National 20 schools

Furniture, No. Of Contracts: 1 storage and fixtures Prequalification of Bidders: No

Domestic Preference Applicable: No

Bidding Document: Goods G05 Equipment for 2 144,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs, 2 universities and Advertising Type: National 20 schools

Health and No. Of Contracts: 1 safety items Prequalification of Bidders: No

Domestic Preference Applicable: No

Bidding Document: Goods G06 Equipment for 2 420,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs, 2 universities and Advertising Type: National 20 schools

Consumables No. Of Contracts: 1

Prequalification of Bidders: No

Domestic Preference Applicable: No

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Bidding Document: Goods G07 Equipment for 2 1,500,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs, 2 universities and Advertising Type: National 20 schools

Computers and No. Of Contracts: 1 printers Prequalification of Bidders: No

Domestic Preference Applicable: No

Bidding Document: Goods G08 Equipment for 1 2,620,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs and 20 schools Advertising Type: International

Electronics and No. Of Contracts: 5 robotics engineering/pro Prequalification of Bidders: No duction sector 494,000 LOT 1: Domestic Preference Automation and Applicable: No robotic equipment 720,000 Bidding Document: Goods

LOT 2: Electronic engineering 930,000 equipment

LOT 3: Electronic appliances 273,000 installer / repairer equipment

Lot 4: Internet of Things / 203,000 Smart appliances equipment

Lot 5: Laboratory technician equipment

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G09 Equipment for 2 1,452,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs and 20 schools Advertising Type: International

Information and No. Of Contracts: 5 communication technology Prequalification of Bidders: No

LOT 1: Graphic 523,000 design 2D and Domestic Preference 3D (including Applicable: No motion graphic and animation) Bidding Document: Goods equipment

LOT 2: 127,000 Software developer equipment 455,000 LOT 3: IT networks administrator equipment 255,000

Lot 4: Web technologies equipment 92,000

Lot 5: Mobile application equipment G10 Equipment for 1 835,000 OCB Prior 1S1E Non-Consulting Services: No skill hub and 20 schools Advertising Type: International

Services sector No. Of Contracts: 4 LOT 1: Hotel 65,000 management Prequalification of Bidders: No equipment

LOT 2: Culinary 740,000 Domestic Preference art equipment Applicable: No

LOT 3: Tour 15,000 Bidding Document: Goods operator equipment

LOT 4: Event 15,000 specialist/mana ger equipment G11 Equipment for 1 292,000 OCB Prior 1S1E Non-Consulting Services: No skill hubs

Advertising Type: International Water Technology sector No. Of Contracts: 2

LOT 1: 82,000 Prequalification of Bidders: No Supervising construction of water systems Domestic Preference and networks Applicable: No equipment

Bidding Document: Goods LOT 2: Installation and 210,000 repair of water

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systems and networks equipment

G12 Equipment for 1 1,012,000 OCB Prior 1S1E Non-Consulting Services: No university and 20 schools Advertising Type: International Design and fashion sector No. Of Contracts: 4 LOT 1: Fashion 82,000 design Prequalification of Bidders: No equipment

Domestic Preference LOT 2: Applicable: No Decorative 690,000 textiles / Bidding Document: Goods apparel equipment

LOT 3: Tailor 90,000 equipment

LOT 4: Sewing 150,000 industry technologist (quality manager, supervisor) equipment G13 Equipment for 1 524,000 OCB Prior 1S1E Non-Consulting Services: No university

Advertising Type: International Pharmaceutical / medical appliances No. Of Contracts: 3 production sector 240,000 Prequalification of Bidders: No

LOT 1: Pharmaceutical Domestic Preference /medical 82,000 Applicable: No production equipment Bidding Document: Goods

LOT 2: Medical 202,000 IT application equipment

LOT 3: Medical electronics equipment G14 Equipment for 1,092,000 OCB Prior 1S1E Non-Consulting Services: No 20 secondary schools Advertising Type: International

Energy and arts sector No. Of Contracts: 3

LOT 1: Installer Prequalification of Bidders: No / repairer 391,000 heating, air conditioning Domestic Preference and Applicable: No refrigeration equipment Bidding Document: Goods

LOT 2: Enamel 90,000

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making equipment

LOT 3: 611,000 Woodworker / cabinet maker / CNC machine operator equipment Source: Equipment Specialist/Procurement Plan, Technical Assistance-9790 GEO.

D. Implementation Arrangements

110. The implementation arrangements are summarized in Table 23. Procurement financed under the project loan will follow the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Value for money will be achieved by reducing risk and improving the quality of procurement and its performance. Through competitive selection, local suppliers may offer cost-effective and innovative solutions. The civil works tender will be packaged to attract regional bidders to the sites of construction, thereby reducing the need for costly mobilization of equipment to the sites. Goods tenders will be marketed to local and international suppliers and will be packaged to attain economies of scale.

Table 23: Implementation Arrangements Aspects Arrangements Implementation perioda Programmatic approach (policy-based lending): Project loan: Subprogram 1: March 2019–30 September 2020 December 2020– Subprogram 2: October 2020–June 2022 December 2026 Estimated completion date 30 September 2020 (SP1) 30 June 2022 (SP2) 31 December 2026 Estimated loan closing 31 March 2021 (SP1) 31 December 2022 (SP2) 30 June 2027 date Management (i) Oversight body Program steering committee chaired by the deputy minister, MOESCS Members: MOESCS, MOF, Ministry of Economy and Sustainable Development, representatives of industry and professional associations (ii) Executing agency Policy-based loan: MOF Project loan: MOESCS (iii) Key implementing Policy-based loan: MOF and MOESCS Project loan: MOESCS agencies (iv) Implementation unit MOESCS will establish a project implementation unit Procurement Open competitive bidding (nationally 23 contracts $6.0 million advertised): works (est.) Open competitive bidding (nationally 30 contracts $11.16 million advertised): goods (est.) RFQ: goods 3 contracts $0.12 million RFQ (non-consulting services) – high- Multiple $1.0 million quality specialized training contracts Consulting services - QCBS (90:10): architectural design 145 person $2.52 million and construction supervision firm months (key - CQS: language training (2 firms), experts) soft skills (2 firms), e-learning (1 firm), social marketing (1 firm), labor market (1 firm) - LCS: Audit firm (1) ICS: PIU staff (nationally advertised) 1,060 person- $2.32 million

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Aspects Arrangements months ICS: nationally and internationally 243 person- $2.89 million advertised months Consulting recruitment readiness: the architectural design and construction supervision firm will be advertised, and requests for proposal will be issued prior to ADB Board of Directors approval. Retroactive financing and Advance contracting for recruitment of key PIU staff and the architectural advance contracting design and construction supervision firm; and for procurement of PIU equipment, furniture, and vehicles. The government has not requested retroactive financing. Disbursement The loan proceeds will be disbursed following ADB's Loan Disbursement Handbook (2017, as amended from time to time) and detailed arrangements agreed between the government and ADB. ADB = Asian Development Bank; CQS = consultant’s qualifications selection; ICS = individual consultant selection; LCS = least-cost selection; MOESCS = Ministry of Education, Science, Culture and Sport; MOF = Ministry of Finance; PIU = project implementation unit; QCBS = quality- and cost-based selection; RFQ = request for quotation. a The front-loading of resources in ADB’s PBL is based on the government timeline for sector reforms. Source: Technical Assistance-9790 GEO.

Figure 2: Program Organization Structure

Soft Skills Firm, E-Learning Firm, Labor Social Marketing Firm Market & Language Providers Team Leader (Technical) Individual Consultants

Engineer (1) PPP and Industry Training Engagement Coordinators (2) Coordinator (1)

Consulting Firms

Source: Technical Assistance-9790 GEO.

E. Project Cost

111. The government has requested €67,865,600 in financial assistance in the form of a programmatic approach, comprising two regular policy-based loans from ADB’s ordinary capital resources: €42,416,000 for subprogram 1 in 2020, and €25,449,600 for subprogram 2 in 2022 (indicative). The total financing gap for fiscal year 2020 is considerable at $1.613 billion, based on a fiscal deficit of 8.5% of GDP in 2020.56 Total budget support in 2020 is expected to be $1.782 billion, $169 million more than the financing gap.57 Total ADB budget support in 2020 will tentatively be $530 million, or 32.9% of the total financing gap. The proposed budget support through subprogram 1 in 2020 will help bridge about 3.0% of the total financing gap. The policy- based loan amount is justified by the government’s development financing needs. The loan for subprogram 1 will have a 15-year term, including a grace period of 3 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the draft loan agreement. Based on the annuity repayment method with 30% discount factor, the average maturity is 12.1 years, and no maturity premium is payable to ADB.

112. The investment project is estimated to cost €30,539,520 (Table 24). Detailed cost estimates are in the project administration manual.

Table 24: Project Investment Plan (€ million) Item Amounta A. Base Costb 1. Quality and relevance of VET in priority economic sectors improved 13.28 2. Access to, and inclusiveness of, VET system increased 12.29 3. Institutional framework strengthened through increased private 1.29 participation in VET Subtotal (A) 26.86 B. Contingenciesc 3.16 C. Financial Charges During Implementationd 0.52 Total (A+B+C) 30.54 a Prices as of 23 February 2020. Numbers are rounded to the nearest hundred. b Includes taxes and duties of €3.0 million, which will be fully exempted by the government. The amount of taxes and duties does not represent an excessive share of the project cost. c Physical contingencies are computed at 5.0% for civil works and goods. Price contingencies are calculated based on escalation rates for domestic and international costs estimated for Georgia. The annual escalation rate for international costs is estimated at 1.6% for 2021, 1.7% during 2022−2023, and 1.8% during 2024–2027. The annual escalation rate for domestic costs is estimated at 3% during 2021−2027. d Includes interest and other charges on all sources of financing.

Source: Technical Assistance-9790 GEO.

56 The financing gap is to be closed primarily through loans and grants from development partners. ADB put together a comprehensive package of support in response to the government’s official request for assistance submitted on 26 March 2020. ADB approved COVID-19 Active Response and Expenditure Support ($100 million), fiscal resilience and social protection ($200 million), and water supply and sanitation ($80 million), and is also preparing education ($50 million), and policy-based loans for energy ($100 million), for an expected total disbursement of $530 million in 2020 subject to approval. In addition, budget support from other development partners in 2020 totals $1,252 million: (i) $205 million from Agence Française de Développement, (ii) $150 million from the Asian Infrastructure Investment Bank, (iii) $223 million from the European Union, (iv) $294 million from German development cooperation through KfW, (v) $200 million from the IMF, and (vi) $180 million from the World Bank. 57 The government sought budget support from development partners in excess of its expected financing needs. Although $1,782 million was discussed with development partners, only $1,157 million was signed by 24 August 2020, of which only $615 million has been disbursed so far. As such, some of these budget support programs may be cancelled or postponed to 2021.

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113. The government requested a regular loan of €16,966,400 from ADB’s ordinary capital resources to help finance the project component. The project cost includes goods (equipment and furniture), civil works, training, consulting services, project management, physical and price contingencies, and interest during construction. It will have a 23-year term, including a grace period of 14 years; an annual interest rate determined in accordance with ADB’s LIBOR-based lending facility; a commitment charge of 0.15% per year (interest and other charges during construction to be capitalized in the loan); and such other terms and conditions set forth in the draft loan agreement. Based on the straight-line repayment method, the average maturity is 18.75 years, and the maturity premium payable to ADB is 0.20% per annum. The government will finance €7,634,880 in civil works, equipment and furniture, training, workshop, survey, and curriculum development; and in-kind assistance of €5,938,240 in the form of office accommodation, office supplies, maintenance and repairs, environmental monitoring, and social due diligence reports; and taxes and duties. The financing plan is in Table 25.

Table 25: Summary Financing Plan Amount Share of Total Source (€ million) (%) Overall program Asian Development Bank Ordinary capital resources (regular policy-based loan) 67.87 69.0 Ordinary capital resources (regular project loan) 16.97 17.2 Government of Georgia 13.57 13.8 Total 98.41 100.0 Sector development program (subprogram 1 and project) Asian Development Bank Ordinary capital resources (regular policy-based loan) 42.42 58.1 Ordinary capital resources (regular project loan) 16.97 23.3 Government of Georgiaa 13.57 18.6 Total 72.96 100.0 Note: Government counterpart funding applies only to the project loan. Numbers are rounded to the nearest hundred. Source: Technical Assistance-9790 GEO.

114. Project Costs Breakdown is provided in the table below.

Table 26: Cost Breakdown ADB Loan GOV Co-financing GOV Counterpart Total cost Taxes and Amount % of Cost Amount % of Cost Amount % of Cost Amount duties Item ($ million) Category ($ million) Category ($ million) Category ($ million) ($ million) A. Investment Costs 1 Equipment & furniture 2.25 19% 7.11 58% 2.81 23% 12.17 1.87 2 Civil works 5.10 78% - 0% 1.43 22% 6.53 0.92 Training, workshop & 3 0.44 99% - 0% 0.01 1% 0.44 0.01 survey 4 Curricula & Materials - 0% 0.85 85% 0.15 15% 1.01 0.15 5 Purchase of training 1.00 100% - 0% - 0% 1.00 - 6 Consulting services 5.86 88% 0.07 1% 0.74 11% 6.68 0.54 Subtotal (A) 14.66 53% 8.03 29% 5.14 18% 27.83 3.49 B. Recurrent Costs Project management 2.86 75% - 0% 0.98 25% 3.83 0.02 Subtotal (B) 2.86 75% - 0% 0.98 25% 3.83 0.02 Total Base Cost C. 17.51 55% 8.03 25% 6.11 19% 31.66 3.51 (A+B) D. Contingencies 1 Physical 0.60 52% 0.30 26% 0.26 22% 1.15 - 2 Price 1.27 49% 0.67 26% 0.63 24% 2.57 - Subtotal (C) 1.87 50% 0.97 26% 0.89 24% 3.72 - E. IDC 0.62 100% - 0% - 0% 0.62 - Total Project Cost 20.00 56% 9.00 25% 7.00 19% 36.00 3.51 (A+B+C)

Source: Technical Assistance-9790 GEO.

F. Project Benefits

115. The Modern Skills for Better Jobs Sector Development Program will help the VET system to produce skilled workers, thereby supporting economic growth and job creation in priority economic sectors. The project is consistent with the directions in government strategies, including the VET Development Strategy 2013-2020 as well as the Georgia VET law passed in 2018. The project will finance the establishment of two VET skills hubs in Kutaisi and Telavi. Skills hubs will offer high quality competency-based programs in seven selected priority economic sectors. Skills hubs will receive a range of assistance under the project, including upgraded facilities, updated equipment, training for teachers and management and capacity building. The project will also finance introduction of VET programs in 20 secondary schools across the country. The goal of this initiative is to support the government’s objective of increasing access to VET geographically and to disadvantaged groups. These investments are expected to lead to increased enrollments and graduation rates for long (1.5 to 3 years) and short (less than 1 year) VET courses in skills hubs and secondary schools, and better employment rates for graduates of these courses. The project will also revive the seven existing sector skills councils, which will promote private sector engagement. Secondary school VET programs will prioritize increasing female participation in non-traditional areas and programs targeted at disadvantaged groups and underserved areas. The project will also finance activities that support improved management of and greater private sector collaborations for VET institutes in Georgia. Improved quality and relevance are expected to lead to a wage premium for VET graduates of the skills hubs. The policy actions taken in line with the proposed policy matrix will support these project reform areas to be more effective.

G. Project Physical Activities

116. Project physical activities are mainly related (i) to the construction phase and civil works—during rehabilitation of the existing infrastructure and the construction of the new workshops; and (ii) to the operational phase, when students and staff will utilize new facilities and equipment. During construction phase the project is expected to have mainly site-specific impacts. The potential environmental impact will be mainly related to noise, dust and waste generated by construction activities and to temporary traffic and utilities relocations, and various health and safety issues, including removal, handing and disposal of old asbestos materials in some areas. During operational phase staff and students will use facilities, workshops, and equipment. This will include operating different machinery, using energy sources, working with potentially hazardous materials in laboratories and other activities.

117. Access Roads. All the pre-selected sites are easily accessible, and, in most cases, the roads are in a normal condition; However, in some areas, internal roads between villages will need rehabilitation. The project sites have car entrances from one or several sides from main roads. In rare cases, where the car entrance is not wide enough, there are places around the yard, where entrance can be arranged. Movement of different machinery and equipment shall be limited within the project boundaries. Public roads will be used for transportation of materials and waste generated during the construction. Contractors are obliged to ensure transportation in compliance with relevant regulations and standards, and to obtain necessary transportation right-of-way permits, as needed.

118. Construction Camp and Storage Areas. The contractor will establish camp sites within the boundaries of the pre-selected sites. Location of camps will be selected by different criteria. In case of construction, camps will be located on an adequate area with available place for

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machinery and storage, considering appropriate distance from the buildings located in, and the houses situated around the yard, to minimize the cumulative environmental effect. Locations should be selected in line with the construction standards and established technical parameters and should be agreed with administration. If storing construction materials temporarily outside the perimeter of the site is necessary, priority will be given to state-owned land and the location shall be agreed with the local authority and MOEPA. Camps shall be provided with water, sanitary and sewerage facilities. In some areas, there are toilets in the yard, which are not used by students. If toilets are not available in the yard, temporary placement of bio toilets will be preferable. Besides, each camp must be equipped with health and safety, and first aid kits, the specifics of certain pre-selected sites makes reptile venom antidotes necessary. Contractors will reinstate any damage at their own expenses.

119. Temporary storage areas will be necessary during implementation of different activities, especially for storing equipment, sand, gravel, and other materials. Contractors will select and agree the area prior to the commencement of the construction. The contractor is responsible to obtain relevant permits, if needed, and reinstate any damage at their own expenses.

IV. ANALYSIS OF ALTERNATIVES

A. Overview

120. This chapter outlines the analysis of alternatives which were considered for selection of 2 skills hubs and 20 secondary schools for this project. A team of experts was engaged by ADB, and also, Educational and Scientific Infrastructure Development Agency (ESIDA) from the GoG side who visited more than 10 VET institutes and 68 general education institutes. One private— College Panacea and two PPP-based institutes—College Construct2 and Railway College were also visited for consideration and need assessment. The experts shortlisted 2 skills hubs which are to be upgraded or renovated under the project and 20 general education institutes which will receive VET workshops. The proposed skills hubs are one in West Georgia and one in East Georgia and schools are spread across the country.

B. No project Option

121. Development of VET sector is one of the important priorities of the GoG. The non- implementation of the project will be a serious risk for the development of the sector and there will be no positive outcomes. The no project option shall not be considered.

C. Site and Design Alternatives

122. Skills hubs (VET institutes and partners) were selected based on following criteria: (i) location—adjacent to growth nodes set out in different GoG strategies and state programmes; (ii) alignment of programs with priority economic sectors; (iii) GoG priorities; and (iv) scope for upgrading infrastructure and equipment.

123. A two-stage selection was applied for the selection of schools. The schools were selected in municipalities, with no other VET provision (in exceptional cases, because of accessibility for specific target groups: ethnic minorities, mountainous villages). The selection of municipalities responded to needs of geographical accessibility, social and economic criteria that also integrates gender and social inclusion considerations. About 15% of the schools selected are in areas with ethnic minority population, near Administrative Boundary Lines, or serving internally displaced person settlements. Within the priority municipalities 28 schools were short-listed through the following supply side criteria: (i) utilization potential of the area covering (a) number of students at basic and secondary education levels, (b) level of absorptive capacity of the target population, (c) demographic sustainability/level of outward migration in last ten years; (ii) Availability of adequate facilities encompassing (a) quality of infrastructure; (b) availability of space for extra labs and workshops; (c) geographic accessibility—transport network and outreach potential; (iv) physical accessibility for persons with disabilities. Among the schools selected by the criteria above, priority was given to schools with evidenced prior experience in VET delivery, including those involved in Work Skills Development Project by the MOESCS. Out of these 28 schools, 20 are identified as priority schools (the rest remain as a reserve list).

124. Selection of alternative sites, instead of chosen ones, represents the risk of lower project performance with respect to the agreed objectives and relevant selected criteria. The team worked on several different alternatives when selecting the design, however the option selected based on the given criteria are the most effective from financial, engineering, and environmental and social aspects point of view.

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V. DESCRIPTION OF THE ENVIRONMENT

A. General

125. The chapter describes the geographical and environmental features of the country at the national level and provides information on the regions where the project pre-selected sites are located. The project covers almost all regions of Georgia. The project pre-selected sites are located in urban areas, mainly in administrative centers or towns of the regions and only a small number of sites are situated in rural areas.

B. Administrative Division of the Regions and Location of Selected Sites

126. A/R Adjara Region is located in southwestern part of Georgia and is divided into six administrative-territorial units. The city of Batumi is an administrative center. The project proposed site is located in the main town of Keda District, in the mountainous part of the region.

127. Imereti Region is located in the western part of Georgia and consists of eleven municipalities. Administrative center is the city of Kutaisi. Project proposed sites are located in Kutaisi, in the city of Chiatura and in the towns of Vani, Khoni, Samtredia, Terjola, Sachkhere and Kharagauli.

128. Kakheti Region is located in eastern part of Georgia and consists of eight territorial- administration units. Administrative center is the city of Telavi. Project sites are located in the town of Tsnori of Sighnaghi Municipality and in the village Duisi of Akhmeta Municipality.

129. Kvemo Kartli Region is located in eastern part of Georgia. The region consists of six territorial-administrative units. Administrative center is the city of Rustavi. Project sites are located in Talaveri village of Bolnisi Municipality and in the town of Gardabani.

130. Mtskheta-Mtianeti Region is located in eastern part of Georgia. The region consists of four administrative-territorial units. Administrative center is the city of Mtskheta. The project site is located in the village Mukhrani of Mtskheta Municipality.

131. Racha-Lechkhumi and Kvemo Svaneti is located on the southern slopes of the Central Caucasus. The region consists of four administrative-territorial units. Administrative center is the city of Ambrolauri. Project proposed site is located in the town of Oni.

132. Samegrelo-Zemo Svaneti Region is located in the central northwestern part of Georgia. The region consists of nine administrative-territorial units. Administrative center is the city of Zugdidi. Project sites are located in the towns of Abasha, Chkhorotsku and Tsalenjikha.

133. Samtskhe-Javakheti Region is located in the southern part of Georgia. The region consists of six administrative-territorial units. Administrative center is the city of Akhaltsikhe. Project proposed sites are located in the town of Vale of Akhaltsikhe Municipality and in the town of Aspindza.

134. Shida Kartli Region is located in eastern part of Georgia. The region consists of five administrative-territorial units. Administrative center is the city of Gori. The project proposed site is located in the town of Kareli.

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C. Physical Environment

a. Topography and Geology

135. Georgia is located at the junction of Europe and Asia, in Caucasus Region, in the belt of Alpine folds in Eurasia. The country is surrounded by the Greater Caucasus Range to the north and the Lesser Caucasus Mountains to the south, which are connected by Surami and Imereti ranges. Most of the country’s territory is built of Mesozoic and Cenozoic formations. Older Cambrian and Paleozoic formations are less represented. Georgia has vertical zonation. The general topographical and geological features are provided below.

(i) Adjara Region is bordered with clearly expressed natural borders where most of the area is represented by mountains, foothills, and deep valleys. Small areas to the coast are occupied by the Kobuleti and Kakhaberi Plains. The orographic basis is created by , Shavcheti and Arsiani Ridges, among which the Adjara basin is included. Adjara borders Turkey to the south. The orographic future of the region is its amphitheater structure, which rises from the Black Sea in the direction of the frontier ridges.

(ii) Imereti Region has a very favorable geographical location with clearly defined geographical boundaries. It is bordered by Racha Ridge from the North, Meskheti Ridge from the South, Likhi Ridge from the East and the River Tskhenistskali from the West. A large part of Imereti territory includes mountainous systems and their branches, uplands and plateaus, plains and deep-cut valleys.

(iii) Kakheti Region includes and basins. To the east and south it is bordered by Alazani and Iori Watersheds, to the north by Caucasian Mountain Range, to the western—Shida and Kvemo Kartli and to the east—Pshav- Khevsureti. Kakheti is remarkable with its geological diversity. The main orographic element is Kakheti Caucasus Range, with its brunches and steep slopes, deep transverse valleys of rivers.

(iv) Kvemo Kartli Region includes and Mshavera River basins and River Mtkvari gorge. It is foundered by , Javakheti and Loki Ridges. The western border is northern part of the Samsari and Javakheti ridges, eastern border is represented by Samgori and Davit Gareji Mountain Ridges, to the north there is Trialeti Ridge and to the south—Loki Ridge, separating the region from Armenia. To the north it’s bordered by South Osetia, Chechnia and Ingushia.

(v) Mtskheta-Mtianeti Region is located in eastern part of Georgia. To the north its bordered by North Ossetia, Chechnya and Ingusgetia, Kakheti Region to the east, Kvemo Kartli to the south and Shida Kartli to the west.

(vi) Racha-Lechkhumi and Kvemo Svaneti is located on the southern slopes of the Central Caucasus. It’s bordered by the Caucasus Mountain Range, Samegrelo and Lechkhumi Ridges, Khvamli and Askhi massifs. It is distinguished by its complex geological structure.

(vii) Samegrelo-Zemo Svaneti Region is bordered by Black Sea to the west, to the northwest, with which the border runs on the River and Ridges. To the northeast and east it is bordered with Racha-Lechkhumi and

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Kvemo Svaneti with which the border runs along the Svaneti and Egrisi Ridges and Askhi Massif. Imereti borders to the southeast and to the south. To the north it’s bordered with Karachay Circassia and Kabardino Balkaria.

(viii) Samtskhe-Javakheti Region includes the upper part of the River Mtkvari. To the east it is bordered by Javakheti, to the west by Arsiani, to the north by Adjara- Trialeti and to the south by Erusheti and Nialiskuri Ridges. The region is distinguished by its diverse aerographical features. Along the ridges there are represented hills, plateaus, cavies, separated by numerous rivers. Two meridian ridges—Samsari and Javakheti are represented on the territory. Important aerographical elements are Akhalkalaki plateau and Akhaltsikhe bolson. There are represented upper parts of the River Mtkvari and lower parts of the River Potskhovi, Paravani, Uraveli, Kvabliani and Otskhe River Valleys.

(ix) Shida Kartli Region is situated between Likhi Ridge and River, from the Main Caucasus Watershed Range to the summit of Trialeti Range and includes middle basin of the River Mtkvari. The region has a complex aerographical and geographical structure. The extreme Southern part it is bordered by the Trialeti Ridge, to the West by Likhi Ridge. Northern part is represented by the main Caucasus Mountain Range. The relief is flat and hilly.

136. Geological map of Georgia is provided below.

Figure 3: Geological Map of Georgia

Source: Consulting Center GeoGraphic.

b. Soils

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137. Georgia is distinguished by the variability of soil covers. The soil is one of main resource in Georgia and has significant importance for the development of agriculture. 6.7 % of the country is saline soil, 11 %—acidic soil, 7.3 % is swampy and 33%—eroded.

138. There are the following main soil types identified: red soils, yellow soils, bog soils, yellow podzolic soils, yellow podzolic clay soils, yellow brown forest soils, brown forest soils, brown forest black soils, raw carbonate soils, grey cinamonic soils, meadow grey cinamonic soils, cinamonic soils, meadow cinamonic soils, black boils, chernozems, mountain-forest-meadow forests, mountain-meadow soils, mountain-meadow chernozems, andosols, saline soils, alluvial soils.

139. Soil distribution throughout Georgia is provided below.

Figure 4. Soils Distribution

Source: MOEPA

c. Climate

140. Georgia is characterized by climate diversity, considering the overall size of the country. Almost all climates of the earth’s surface are spread in the country, ranging from the humid climate of Black Sea coast and dry subtropics of eastern Georgia to the alpine climate of Caucasian Mountains. Climate diversity is determined by its location between the Black and Caspian Seas and the Grater Caucasus Mountain Range and ridges of different directions and highs. Caucasian Mountain Range plays an important role in creation of the country’s climate, being a natural barrier for cold air masses from the north. The Black Sea supports arrival of large amount of precipitation, especially in western Georgia. The country is divided into the following sub-zones: marine subtropical humid climate zone, subtropical continental zone transitioning to marine climate zone, including transitional sub-zone between dry subtropical climate of front Asian Mountains and temperate humid climate zone. The first one is represented in western part of Georgia, where lower parts are characterized by mild winters and relatively cool summers, with moderate temperatures, abundant rainfalls and high humidity. The second one includes Eastern Georgia, characterized by a moderately humid subtropical climate. Winters are colder

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here and the temperature amplitude is larger, with relatively little rainfalls and low humidity. The sub-zone of this climate zone includes the central steppe part of the southern mountains. The climate is more continental, summers are hot, winters—cold and the precipitation is less than in other areas at the same altitude.

141. The map below shows climate zones of Georgia and levels of precipitation by regions.

Figure 5: Climate Zones

Source: MOEPA

Figure 6: Precipitation

Source: MOEPA.

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d. Water Resources 142. Georgia is very rich in water resources, rivers, lakes, meadows, swamps and groundwater. Rivers of Georgia belong to the Black Sea and Caspian Sea basins. Almost all rivers in eastern Georgia form Mtkvari unified system and flow into Caspian Sea. The rivers of western Georgia are independently connected to the Black Sea. The largest river in Georgia in Mtkvari, which originates in Turkey and joins the Caspian Sea on the territory of Azerbaijan. Main tributaries are Potskovistskali, Liakhvi, , Aragvi, Paravani, Algeti and Ktsia-. The rivers are fed by glaciers, snow, rain and groundwater. Georgia is very rich with fresh groundwater resources. The map below shows the river basins of Georgia.

Figure 7: River Basins of Georgia

Source: MOEPA

143. Despite of the fact that Georgia is rich in water resources, water is unevenly distributed and mainly concentrated in western part of Georgia. The eastern part of Georgia often suffers from water shortages. Caused by wetland drainage and artificial regulations of the level, water ecosystems have been significantly decreased and modified. Because of excessive use of discharge from industrial and domestic wastewater, inland waters and the Black Sea have been polluted. Because of the lack of monitoring data, it’s difficult to create a complete picture of the surface water.

e. Natural Disasters

144. Georgia belongs to the complex region with a diverse spectrum of natural processes. Large percentage of landslides and ravines comes to agricultural land and urban areas. A significant part of the surrounding areas of the reservoirs is deformed and damaged by various natural processes. The frequency of snow avalanches is also high. Extensive development of erosion processes is also quite challenging, which itself is caused by high energetic potential of the region, sustainability of fertile rocks, landscape-climatic diversity and intensive agricultural activities. The territory of Georgia, as an integral part of Caucasian seismic region, belongs to the seismic-active belt of the Mediterranean-Himalayas and represents the northern border zone of the Azia-Iran Mountain Range. It is among the most difficult geodynamic regions in terms of

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expected earthquakes, caused by the interactions of Arabian and Eurasian tiles. Javakheti volcanic highlands are characterized by high earthquake activities.

145. The map below shows potential seismic hazards by regions.

Figure 8: Seismic hazards assessment by regions

Source: MOEPA

f. Biodiversity and Ecosystems

146. Georgia is part of the Caucasus Region, which is one of the most biologically rich regions of the world. It’s one of the World Wildlife Fund’s (WWF) 200 global eco regions, and considered among 36 “biodiversity hotspots” of the world (Caucasus and Iran-Anatolian Hotspots), identified by Conservation International as being the richest and most threatened reservoirs of the planet and wild animals. Main threats to biodiversity in Georgia are habitat loss, overexploitation, invasive species, and pollution.

147. Georgia is rich in various types of ecosystems, habitats, and associated species. The country’s biodiversity provides life-sustaining services: (i) forest ecosystems providing timbre and non-timber products, clean water, prevent erosion and landslides and mitigate their impacts, regulate the global carbon cycle, support recreation and tourism, provide critical habitats to numerous species; (ii) pastures and hay meadows, providing food for livestock, medical and culinary herbs, support a traditional way of life, recreation and tourism; (iii) wetlands and lakes, providing stopovers for birds and their annual migrations, regulate the global carbon cycle, important fresh water reservoirs and providing water quality control, recreation and tourism, support commercial fisheries; (iv) Black Sea, providing support to recreation and tourism, commercial fishery and important reservoir of carbon dioxide and methane; (v) glaciers, regulating flow of water into the country’s river system and providing water for homes and agriculture.

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148. Biodiversity of the country is rich to the large variety in topography and climate, and related biomes—broadleaf, coniferous, mixed and floodplain forests; sub-alpine and alpine grasslands; bare rocks, subnival and nival biomes; steppe and semi-deserts. Flora diversity in Georgia includes about 4,100 vascular species, 300 of which are endemic to the country and another 600 are endemic to the Caucasus Ecoregion, including 800 mosses, 800 lichens, 7,000 mushrooms, and 2,600 algae. About 2,000 species have direct economic value: timber, firewood, food, forage, or medicine. The national Red List includes 56 vascular species, including globally threatened ones like Kozlovskiy Salsify (Scorzonera kozlovskyi, IUCN Cr), Grigorashvili's Salsify (Podospermum grigoraschvilii, IUCN En), Kakhetian Bellflower (Campanula kachethica, IUCN En).

149. Fauna diversity in Georgia includes 100 mammals, 12 amphibians, 50 reptiles, over 300 birds and 80 freshwater fish, making the country an important biodiversity reservoir. The Red List of Georgia includes 137 fauna species, of which at least 50 are of global importance, including Bezoar Goat (Capra aegagrus, IUCN Vu), Caucasus Leopard (Panthera pardus saxicolor, IUCN En), Goitered Gazelle (Gazella subgutturosa, IUCN Vu), Egyptian Vulture (Neophron percnopterus, IUCN En), Caucasian Salamander (Mertensiella caucasica, IUCN Vu), Mehely's Horseshoe Bat (Rhinolophus mehelyi, IUCN Vu), Apollo Butterfly (Parnassius Apollo, IUCN Vu) and others. Endemic fauna includes 19 mammals, 3 birds, 15 reptiles, 3 amphibians and 3 birds. Georgia is also part of the “Caucasus” Endemic Bird Area58.

150. Red list of Georgia includes 139 animal species and 56 wooded plant species. Part of them are categories as endangered or critically endangered. Some of them are considered as globally threatened. Approximately 60 % of the total number of endemic pant species re classified as endangered due to disturbance of their habitats, excessive use, pathogens and other pressures. Among threated woody plants are represented chestnut (Castanea Sativa), Imeretian oak (Quercus imeretina), Colchic box Tree (Boxus Ccolchica), elm (Ulmus glabra, U. Minor) etc.

151. Among Black Sea species all six species of sturgeon found in Georgian coastal waters and river deltas are threatened and included in the IUCN Red List as critically endangered. Due to habitat fragmentation over the last years, the number of Caucasian Salamandra (Mertensiella caucasica) and the Caucasian viper (Vipera kaznekovi) has declined, and they are in the Georgian Red List as endangered. The Georgian List includes 35 avian species. Among birds of prey the most threatened species are vultures (Aquila heliacal). Among vultures the black vulture (Aegipius monachus) is the rarest. The black stock (Ciconia nigra) is a noteworthy, but uncommon species.

152. Most large mammals in Georgia are included in the Red List. The main threats for the populations are habitat fragmentation and illegal hunting. Among the angulates wild goat (Capra aegragus) is one of the most threatened species. Red deer number is also very low, with small, isolated populations. A species of turs (Capra caucasica and C. cylindricomis) occurs in very limited areas. Brown Bear is also in the Red List. Number of otters (Lutra lutra) is decreased, Eurasian linx (Lynx, lynx) is classified as critically endangered in the Red List. Among marine mammals the bottlenose dolphin is most at risk.

58 BirdLife International. 2020. Endemic Bird Areas factsheet: Caucasus. http://www.birdlife.org.

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153. As the project sites are located in urban areas, there is no high risk of adverse impact on biodiversity, however in some places there are birds, reptiles and other wildlife species present in the surrounding areas, which may be seen at the project areas, as well. Negative direct or indirect impacts on the species should be avoided as much as possible during construction phase. Details shall be provided in site-specific EMPs.

154. Vegetation on the project sites is mainly woody plants and shrubs, coniferous, deciduous, evergreen, fruity and flowering species, as well as ornamental plants. Among different useful features, vegetation has important cognitive significance for students. Since most of the institutes have large yards, cutting down plants should not be necessary. The vegetation cover must be considered when selecting the areas for construction and, in case of need of cutting, all necessary appropriate procedures should be carried out.

g. Forests

155. Forests are especially valuable natural resources in Georgia, which cover more than 40% of the country’s territory, having great importance at national, regional, and global levels. Forest in Georgia conserves the biological diversity and ensures delivery of vital direct and indirect resources and benefits to the population. Georgian forests provide shelter to many animal species, assisting them in maintaining genetic diversity. Around 98% of forests has natural origin. The composition, structure, growth, and other characteristic determine extremely reach biodiversity, up to 400 tree and shrub species grow in the forests. The large number of endemic tree species points to the high diversity of dendroflora. Among the endemic species, 61 species are endemic to Georgia and 43 are endemic to Caucasus.

h. Protected Areas

156. In recent decades, the GoG has significantly expanded the Protected Area (PA) network, through establishing new PAs and enlarging existing ones. In Georgia, PAs are a high-level national priority, embedded in national policies and strategies, including the 3rd National Environmental Action Plan (NEAP-3) for the period 2017-2021 and the 2nd National Biodiversity Strategy and Action Plan (NBSAP) for the period 2014-2020.59 Under these, the country strives to ensure the protection and rehabilitation of unique ecosystems, species diversity and genetic resources of biota, through a PA system that covers at least 12% (836,400 ha) of the country, effectively managed through capable administrations and with financial sustainability mechanisms in place. Under the Paris Agreement, the country also recognizes its PA system as being key to combating climate change, while in its Intended Nationally Determined Contributions60, Georgia committed to expand the PA network to 1,394,000 ha (20% of the country), exceeding the target stated in its NBSAP. At the national level, the 1996 Law on Protected Areas System (the “PA Law”) provides the legal basis for the country’s PA network, a law that is currently being revised.

157. The list of PAs in the program’s selected regions and the map of PAs are provided below.

59 The Ministry of Environment and Natural Resources Protection of Georgia. 2014. National Biodiversity Strategy and Action Plan of Georgia 2014 – 2020. Tbilisi 60 The Government of Georgia. 2017. Georgia’s Intended Nationally Determined contribution to the UNFCCC. Tbilisi

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Table 27: List of Protected Areas in Selected Regions Protected Area Name and Category Region Shida Kartli Planned Protected Areas (Trialeti: Shida Kartli Ateni&Algeti) Borjomi-Kharagauli National Park Expansion Samtskhe-Javakheti Goderdzi Petrified Forest Natural Monument Samtskhe-Javakheti Kartsakhi Managed Reserve Samtskhe-Javakheti Sulda Managed Reserve Samtskhe-Javakheti Samtskhe-Javakheti Erusheti Planned National Park Samtskhe-Javakheti Tetrobi Managed Nature Reserve Samtskhe-Javakheti Borjomi State Nature Reserve Samtskhe-Javakheti Ktsia-Tabatskuri Managed Nature Reserve Samtskhe-Javakheti Khanchali Managed Reserve Samtskhe-Javakheti Bughdasheni Managed Reserve Samtskhe-Javakheti Madatafa Managed Reserve Samtskhe-Javakheti Javakheti Protected Areas Expansion Samtskhe-Javakheti Samegrelo-Zemo Svaneti Balda Canyon Natural Monument Samegrelo-Zemo Svaneti Samegrelo Planned Protected Area Samegrelo-Zemo Svaneti Martvili Canyon Natural Monument Samegrelo -Zemo Svaneti River Abasha Waterfall Natural Monument Samegrelo -Zemo Svaneti Nazodelao Cave Natural Monument Samegrelo -Zemo Svaneti Oniore Waterfall and The First Cave of Toba Samegrelo - Zemo Svaneti Toba Waterfall and Arsen Okrojanashvili Cave Natural Samegrelo - Zemo Svaneti Monument Jortsku Cave Natural Monument Samegrelo - Zemo Svaneti Ochkhomuri Cave Natural Monument Samegrelo - Zemo Svaneti Kacoburi Managed Nature Reserve Samegrelo Kolkheti National Park Expansion Samegrelo Svaneti Planned Protected Areas Racha-Lechkhumi-Zemo Svaneti Racha Planned National Park Racha Pshav-Khevsureti Protected Areas Mtskheta-Mtianeti Asa Managed reserve Mtskheta-Mtianeti Bodorna Rock Columns Natural Monument Mtskheta-Mtianeti Roshka Natural Monument Mtskheta-Mtianeti Aragvi Planned Protected Landscape Mtskheta-Mtianeti Mtskheta-Mtianeti Natural Monument of Sakhizari cliff Mtskheta-Mtianeti Natural Monument of Abano Mineral Lake Mtskheta-Mtianeti Natural Monument of Travertine of Truso Mtskheta-Mtianeti Keterisi Muneral Vocluse Natural Monument Mtskheta-Mtianeti Truso Gorge Planned Protected Landscape Mtskheta-Mtianeti Tbilisi National Park Mtskheta-Mtianeti Jvari Pass Travertine Natural Monument Mtskheta-Mtianeti Gardabani Managed Nature Reserve Kvemo Kartli Kvemo Kartli

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Samshvilde Canyon Natural Monument Kvemo Kartli Birtvisi Natural Monument Kvemo Kartli Dashbashi Canyon Natural Monument Kvemo Kartli Tusheti State Nature Reserve Kakheti Batsara State Nature Reserve Kakheti Babaneuri State Nature Reserve Kakheti Kakheti Ilto Managed Nature Reserve Kakheti Nedzvi Managed Nature Reserve Kakheti Vashlovani State Nature Reserve Kakheti Kakheti Chachuna Managed Nature Reserve Kakheti Alazani flood plain forests Natural Monument Kakheti Takhti-Tefa Natural Monument Kakheti Egle canyon Natural Monument Kakheti Lagodekhi State Nature Reserve Kakheti Lagodekhi Managed Nature Reserve Kakheti Mariamjvari State Nature Reserve Kakheti Korugi Managed Nature Reserve Kakheti Iori Managed Nature Reserve Kakheti Mariamjvari Protected Area Expansion Kakheti Tusheti Protected Landscape Kakheti Borjomi-Kharagauli National Park Imereti, Samtskhe-Javakheti Ajameti Managed Nature Reserve Imereti Planned Managed Reserve Imereti Navenakhevi Karst Cave Natural Monument Imereti Sakajia Karst Cave Natural Monument Imereti Tskaltsitela Ravine Natural Monument Imereti Tsutskvati Karst Cave Natural Monument Imereti Mukhuri Waterfall Natural Monument Imereti Sataplia State Nature Reserve Imereti Sataplia Managed Reserve Imereti Prometheus Karst Cave Natural Monument Imereti Tetri mgvime Karst Cave Natural Monumant Imereti Khomuli Karst Cave Natural Monument Imereti Iazoni Karst Cave Natural Monument Imereti Cracked lake Natural Monument Imereti Satsurblia Cave Natural Monument Imereti Solkota Cave Natural Monument Imereti Didghele Cave Natural Monument Imereti Melouri Cave Natural Monument Imereti Bgheri Cave Natural Monument Imereti Ghliana Cave Natural Monument Imereti Adjara

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Kintrishi State Nature Reserve Adjara Kobuleti State Nature Reserve Adjara Kintrishi National Park Adjara Kobuleti Managed Nature Reserve Adjara Adjara Source: MOEPA

Figure 9: The Map of Protected Areas of Georgia

Source: MOEPA

158. Most of the project pre-selected sites are located in urban areas (small towns) and few in villages; they are not directly adjacent to the PAs, however, if there will be changes in the project sites selection, this issue has to be considered.

i. Cultural Heritage

159. Georgia has a rich cultural heritage, with an abundance of archeological sites, natural monuments, PAs, mineral water, balneology, seaside and mountain ski resorts. One of the main priorities of the government is to promote tourism development, where there was serious dynamic growth before restrictions caused by COVID-19. The country has archeological, architectural, engineering monuments and complexes, historic towns and settlements, human made cultural landscape, national treasures.

j. Social and Economic Characteristic

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160. GDP grew by 5.1% in 2019, but COVID-19 is expected to cause GDP growth to fall by 5.0% in 2020—the second largest decrease in Central and West Asia Department countries. A strong economic recovery is expected in 2021, with GDP projected to grow by 5.0%. While the business environment in Georgia has improved over time, some barriers to private sector competitiveness remain, including a skills mismatch in the labor market. There was a big improvement in Georgia’s business environment due to government reforms, with the country’s ranking on the World Bank’s Doing Business Index jumping from jumped from 24th to 7th during 2014–2019. Much of the improvement in the country’s business environment is attributed to its adoption of a private sector-led development model, including major economic management and governance reforms.

161. The country faces several social and labor market challenges. Although the overall unemployment rate declined from 17.2% in 2012 to 11.6% in 2019, the unemployment rate for youth was substantially higher at 30.4%. Furthermore, the proportion of youth who are NEETs was also high—26.0% for 15–24-year-olds and 30.6% for 15–29-year-olds in 2019. Although the proportion of the population in employment in Georgia is high, a large part of the workforce is concentrated in low-productivity sectors such as agriculture. 61 There has been substantial progress in poverty reduction, with the poverty rate falling from 34% in 2004 to 19.5% in 2019. Although poverty has declined, inequality remains a significant issue. The Gini coefficient in Georgia measured 36.4% in 2018—one of the highest among former Soviet countries.62 There are substantial differences in economic development across regions of the country and between urban areas and rural and remote areas. Inequities extend to educational access and outcomes, with students in rural areas having less access to quality schooling and lower scores on international assessments compared to students in Tbilisi and other urban areas. Inequities are also prevalent for women, ethnic minorities, and persons with special educational needs. According to the World Economic Forum Global Gender Gap Index 2020, Georgia ranked 74th out of 153 jurisdictions on the overall index, 29th on the educational attainment sub index and 61st on the economic participation and opportunities sub index. There is a substantial gender segregation in program choices and in labor market participation, with females concentrated in low paid sectors.

k. Agriculture

162. Agriculture is one of the most important sectors of the Georgian economy, delivering 9% of GDP which is main occupation for more than a half of the country’s population. There are regions where more than 70% of the workforce is employed in the agriculture sector. The most popular crops are corn, wheat and barley. The fruit and nuts are growing mainly in Shida Kartli, Kakheti and Samegreli-Zemo Svaneti. In terms of cattle breeding and dairy cow breeding, most important regions are Samegrelo-Zemo Svaneti, Imereti, Kvemo Kartli. Dairy sector features development barriers caused by low sector productivity and quality of milk and insufficient food safety standards. Georgia is one of the oldest wine producer countries. Due to the combination of terrain, elevation, soil, drain and sunshine, there are optimal conditions for viniculture. Kakheti is a lead producer region of grapes in Georgia.

l. Rural Infrastructure

61 R. Li et al. 2019. OECD Reviews of Evaluation and Assessment in Education: Georgia. Organization for Economic Cooperation and Development. Paris. 62 A Gini coefficient measures the degree of inequality of income or wealth. A value of zero indicates no inequality, while a value of 100 indicates complete inequality.

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a. Electricity and Natural gas

163. Almost all households are connected to electric grid in Georgia. The only region is Kakheti, where electricity coverage is below 100%. Based on the 2016 data, only 66.9 % of households have access to the gas supply network. Gas distribution infrastructure has been expanding during the last 5 years and the percentage of households connected to gas has been increased. Tbilisi is the most advantaged in terms of households’ direct connection to gas pipelines, which is followed by Kvemo Kartli and Kakheti. Samegrelo-Zemo Svaneti is the most disadvantaged, followed by Adjara, Imereti, Racha-Lechkhumi and Kvemo Svaneti.

b. Irrigation System

164. The melioration of lands and construction and rehabilitation of the irrigation and draining systems are important for ensuring highly affective agriculture industry. During last decades, a major part of the infrastructure was destroyed and the GoG has launched the programs for its rehabilitation.

c. Road Infrastructure

165. Most of the domestic public roads in Georgia are in good condition. However, some areas require rehabilitation. Part of the roads linking villages and leading to agricultural lands and to cultural heritage sites are in poor condition and need reconstruction and rehabilitation.

d. Water Supply 166. Domestic water supply infrastructure and sanitation systems require rehabilitation or reconstruction. Outside the capital, where almost all households enjoy drinking water, the percentage of households with water supply pipe installed in the dwelling varies between 34.2 % in Kakheti and 43.7 % in Kvemo Kartli. Underdeveloped water supply infrastructure is found in all regions except Tbilisi. Access to wastewater treatment system is quite poor outside urban areas63. Household distribution by main sources of drinking water is provided in the table below.

Table 28: Household Distribution by Main Sources of Drinking Water

Source: Rural Development Strategy of Georgia.

63 Ministry of Agriculture of Georgia. 2017. Rural Development Strategy of Georgia 2017-2020. Tbilisi

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m. Education and Gender Equality

167. Inequities are still observed in the field of educational access and outcomes, with students in rural areas having less access to quality schooling and lower scores on international assessments compared to students in Tbilisi and other urban areas. Inequities are also prevalent for women, ethnic minorities, and persons with special educational needs.

168. VET colleges cover only 37 of 69 municipalities in the country. Tbilisi has the highest concentration of VET institutes. In 2019, there were 90 VET institutes (52 private and 38 public), including 66 vocational colleges, 8 general education schools and 16 higher education institutions delivering long-term VET programs. An additional eight public VET institutes are planned. Private VET institutes represent almost 60% of all institutes. Most of these are located in cities where the socio-economic status of potential students is higher as people can afford to pay tuition fees. The capacity of private VET institutes is underutilized.

169. In 2019, 11,853 students were enrolled in VET in Georgia. This is down from more than 16,500 enrollments in 2017. This decrease was due to reductions in the annual number of VET admissions which was associated with (i) the phasing out of non- CBTA programs, and (ii) an increase in VET program duration from 6−12 months to an average of 1.5 years. Although the private sector represents two-thirds of VET institutes, it represents only 33.9% of VET enrollments.

170. According to the World Economic Forum Global Gender Gap Index 2020, Georgia ranked 74th out of 153 jurisdictions on the overall index64, 29th on the educational attainment sub index and 61st on the economic participation and opportunities sub index. There is substantial gender segregation in program choices and in labor market participation, with females concentrated in low paid sectors65. A much higher share of men is found in stereotypically male professions such as engineering, construction, energy, transport and communications, and gas and water supply. The majority of women are employed in jobs with a caring or service aspect. Women account for around 75% of employees in the healthcare and social sectors, 60% of those working in the hospitality sector, and 84% of schoolteachers. Less than 10% of women work in construction, while 23% are employed in transport and communications.66 Although women’s participation in the sector is close to that of men—48% of VET enrolments are women, program selection displays strong gender segregation.67

n. Baseline Environmental Monitoring

171. Baseline environmental monitoring has been conducted in August, 2020. Baseline information on the ambient air and noise level were collected by the Consulting Company “Gergili”, while assessment of drinking water quality was conducted by the Scientific-research Firm “Gamma”.

64 World Economic Forum. 2020. Global Gender Gap Report 2020. Geneva. 65 National Statistics Office of Georgia. 2020. Distribution of Population by Economic Status and Gender. Tbilisi. 66 Asian Development Bank. 2018. Georgia Country Gender Assessment. Manila. 67 Education Management and Information System. 2020. Key Statistics in VET. Tbilisi.

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a. Noise

172. Baseline data on noise has been collected in 17 project sites using 1-hour exposure per each location and by using the SD-9300 with SL-417 produced by REED instruments.

173. The results of the noise measurement are provided in the tables below.

Table 29: Results of Noise Level Measurement

# Date Name of the Site City/Village Region Max. Min. Ave. Arip Aliev Bolnisi Municipality Village Talaveri Kvemo Kartli 66.20 32.50 43.83 Talaveri Public 1 2020.08.27 School #1 Levan Devdariani Gardabani Public Gardabani Kvemo Kartli 61.70 32.80 42.77 2 2020.08.27 School #1 Akhmeta Municipality Village Duisi Kakheti 63.30 32.50 43.35 3 2020.08.28 Duisi Public School 4 2020.08.28 College Prestige Telavi Kakheti 64.60 35.60 42.60 Sighnaghi Municipality Tsnori Tsnori Kakheti 63.30 32.70 43.14 5 2020.08.28 Public School Aspindza Public Samtskhe- Aspindza 68.10 33.30 43.44 6 2020.08.29 School Javakheti Vale Public School Samtskhe- Akhaltsikhe 62.80 32.20 43.68 7 2020.08.29 #1 Javakheti 8 2020.08.29 Keda Public School Keda Adjara 66.20 33.10 44.33 Tsalenjikha Public Samegrelo- Tsalenjikha 64.30 34.90 45.00 9 2020.08.30 School #1 Zemo Svaneti Ramin Dikhaminjia Samegrelo- Chkhorotsku Public Chkhorotsku 70.10 36.00 45.90 Zemo Svaneti 10 2020.08.30 School #1 Abasha Public Samegrelo- Abasha 63.10 36.30 46.82 11 2020.08.30 School #1 Zemo Svaneti Samtredia Public Samtredia Imereti 67.70 32.70 46.04 12 2020.08.31 School #11 13 2020.08.31 College Iberia Kutaisi Imereti 80.30 43.50 58.40 Terjola Public Terjola Imereti 67.40 40.30 46.10 14 2020.08.31 School #2 Racha- Simon Skhirtladze Oni Lechkhumi- 67.20 37.40 42.70 Oni Public School 15 2020.08.31 Kvemo Svaneti Village Mukhrani Mtskheta- Mukhrani 81.20 42.30 60.00 16 2020.09.04 Public School Mtianeti Kareli Public School Kareli Shida Kartli 79.20 39.60 51.10 17 2020.09.04 #1 Source: Consulting Company “Gergili”

174. The IFC’s EHS Guidelines on noise management provides noise level data for day and nighttime, which are applicable for the traffic noise, but does not offer details for construction noise and vibration. Because no vibration impact is anticipated from the traffic, there are no

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specific guidelines. The national standards for noise are set according to the Technical Regulation – Acoustic noise limits for rooms/premises in residential houses and public establishments (Document #300160070.10.003.020107, Date 15/08/2017). Admissible noise standards according to the IFC and Georgian national regulation for residential areas are provided above in this document. The Project will comply with both - IFC Guidelines and Georgian national Standards.

175. As no standardized criteria have been developed for assessing construction noise impact, criteria must be developed on a project-specific basis unless local ordinances apply, which are not very useful in evaluating construction noise. They usually relate to nuisance and hours of allowed activity and sometimes specify limits in terms of maximum levels, but they are not so practical for assessing the impact of the construction process. Project construction noise criteria should take into account the existing noise environment, the absolute noise levels during construction activities, the duration of the construction, and the adjacent land use.

176. As a recommended noise limits for the construction activities in the project sites, IFC’s EHS Guidelines will be used. The table below shows the noise limits.

Table 30: IFC Noise Level Guidelines

Receptor One-hour Laeq (dBA) Daytime Night-time 07.00-22.00 22.00 – 07.00 Residential; institutional; 55 45 educational Industrial; commercial 70 70 Source: IFC.2007. General EHS guidelines. Environmental/Noise Management. Washington, DC.

177. IFC EHS guidelines advise that where existing ambient noise levels already exceed thresholds, the Project should not result in an increase of more than 3dB over existing ambient noise at the nearest receptor location off-site.

178. During the assessment process, noise was mainly caused by transport movement or other measures causing noise, e.g. loud music close to the site etc. The high level of noise at the Mukhrani site is due to its proximity to the central road, while the high level of noise in Kutaisi College site is due to strong wind during the measurements. In general, at all 17 sites, the noise level in the immediate vicinity of households is negligible, but as the measurements were performed during inactive period, it can be assumed that during active educational period the noise data will be different and average levels at all sites will be higher than at the period of actual measurements and the construction will introduce additional noise sources to the local area.

179. At all 17 sites, noise level during construction and operational site will be depended on the equipment used and type of activities planned in each educational institution and its schedule. There will two main sources of noise during the construction: noise resulting from building construction works and noise from additional activities, such as transportation of materials to the site. The dominant source of noise in construction equipment is the engine, usually a diesel, without sufficient muffling. Noise levels from the main construction equipment and operations are presented in the table below.

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Table 31: Construction Equipment Noise Emission Levels

Equipment Typical noise level (dBA) approximately 15 m from source Air compressor 81 Backhoe 80 Compactor 82 Concrete mixer 85 Derrick crane 88 Bulldozer 85 Pneumatic tool 85 Truck 88 Source: Consulting Company “Gergili”

180. The Construction may include usage of some specific machinery (backhoe, bulldozer, trucks, compactor, etc.). Noise and vibrations will be inevitable from different activities e.g digging basement, soil compaction, in some cases breaking of the old structures by hydraulic hammer etc.

181. The equipment (e.g., wood and metal processing), which can be installed inside newly constructed buildings has to be selected according to maximum permissible limits (MPL) not to exceed MPL outside buildings during educational hours.

182. According the report provided by the contractors, it is not anticipated that the impact will be significant, as frequent exceedances of acceptable noise levels resulting from construction activities are anticipated for the short period of time and will be conducted mainly during the daytime. The anticipated impact is considered as medium level. However, as the project is implemented in the vicinity of educational institutions and includes the measure of equipping workshops with special machineries, detailed measures are planned for the mitigation of noise and provided in EMP for the different stages of the project operation.

b. Ambient Air

183. During the preliminary assessment of the air quality, measurement of Inorganic Dust Pm2,5 - Pm10, Nitrogen Dioxide, Sulphur Dioxide, Carbon Monoxide, Carbon Dioxide were performed at 17 sites, with Aeroqual Series 500. Each parameter was measured for 5-7 minutes. Maximum, minimum, and average concentration were calculated per 17 sites. Results of ambient air measurement are provided in the tables below in ppm and in m3.

Table 32: a) Results of Ambient Air Measurement (in mg/m3)

Arip Aliev Bolnisi Kvemo Site Municipality Kartli Talaveri 2020.08.27 1 Village Talaveri Public School #1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0 833.4 0.09024 0.021 0.008 0.4192 Minimum (mg/m3) 0 795.6 0 0.01 0.007 0 Average (mg/m3) 0 816.075 0.04888 0.014 0.00796 0.12663333

Levan Kvemo Devdariani Site Kartli 2020.08.27 Gardabani Gardabani 2 Public School #1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 5.7385 891 0.094 0.011 0.008 0.393 Minimum (mg/m3) 5.1865 867.6 0.01692 0.007 0.006 0.262 Average (mg/m3) 5.4299167 879.48 0.059085714 0.009 0.007 0.3406

Akhmeta Kakheti 2020.08.28 Site Municipality Duisi 3 Village Duisi Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0 810 0.04512 0.013 0.008 0.4192 Minimum (mg/m3) 0 777.6 0 0.007 0.006 0 Average (mg/m3) 0 788.1 0.018048 0.009375 0.007 0.13624

Kakheti Site 2020.08.28 Telavi 4 College Prestige CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 10.971 696.6 0.10716 0.015 0.007 0.2358 Minimum (mg/m3) 9.867 682.2 0.03948 0.007 0.005 0.131

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Average (ppm) 10.319333 691.56 0.072568 0.01 0.006 0.17816

Sighnaghi Kakheti 2020.08.28 Site Municipality Tsnori 5 Tsnori Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0 891 0.05076 0.031 0.006 0.262 Minimum (mg/m3) 0 842.4 0.0282 0.007 0.005 0 Average (mg/m3) 0 866.9333333 0.039104 0.0122 0.0054 0.14846667

Samtskhe- Site Javakheti 2020.08.29 Aspindza 6 Aspindza Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 6.003 682.2 0.086 0.011 0.006 0.288 Minimum (mg/m3) 4.439 673.2 0.056 0.005 0.005 0.131 Average (ppm) 5.352 675.72 0.069 0.007 0.005 0.201

Samtskhe- Site Javakheti 2020.08.29 Akhaltsikhe 7 Vale Public School # 1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 752.4 0.096 0.010 0.003 0.000 Minimum (mg/m3) 0.000 691.2 0.060 0.003 0.003 0.000 Average (mg/m3) 0.000 717.3 0.077 0.005 0.003 0.000

Achara Site 2020.08.29 Keda 8 Keda Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 5.221 781.2 0.070 0.015 0.005 0.603 Minimum (mg/m3) 4.405 725.4 0.043 0.005 0.004 0.524 Average (mg/m3) 4.853 755.1 0.058 0.010 0.005 0.566

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Samegrelo- Zemo Site Tsalenjikha Svaneti 9 Tsalenjikha 2020.08.30 Public School #1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 801 0.053 0.013 0.008 0.524 Minimum (mg/m3) 0.000 777.6 0.000 0.008 0.005 0.445 Average (mg/m3) 0.000 790.2 0.017 0.010 0.006 0.493

Ramin Samegrelo- Zemo Site Dikhaminjia Chkhorotsku Svaneti 2020.08.30 10 Chkhorotsku Public School #1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 824.4 0.045 0.010 0.006 0.576 Minimum (mg/m3) 0.000 815.4 0.000 0.007 0.005 0.472 Average (mg/m3) 0.000 818.1 0.026 0.008 0.006 0.515

Samegrelo- Zemo Svaneti 2020.08.30 Site Abasha public 11 School #1 Abasha CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 8.568 880.2 0.088 0.122 0.121 0.707 Minimum (mg/m3) 6.670 842.4 0.073 0.008 0.007 0.629 Average (mg/m3) 7.787 866.8285714 0.084 0.035 0.034 0.681

Samtredia Imereti 2020.08.31 Site Public School Samtredia 12 #11 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 856.8 0.036 0.030 0.017 0.314

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Minimum (ppm) 0.000 838.8 0.009 0.022 0.007 0.236 Average (ppm) 0.000 845.4857143 0.026 0.026 0.011 0.262

Imereti 2020.08.31 Site College Iberia in Kutaisi 13 partnership CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 824.4 0.066 0.157 0.024 0.157 Minimum (mg/m3) 0.000 804.6 0.026 0.052 0.009 0.026 Average (mg/m3) 0.000 812.0571429 0.047 0.104 0.015 0.087

Imereti 2020.08.31 Site Terjola Public Terjola 14 School #2 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 833.4 0.081 0.020 0.005 0.157 Minimum (mg/m3) 0.000 801 0.032 0.008 0.004 0.052 Average (mg/m3) 0.000 813 0.059 0.012 0.005 0.105

Racha- Lechkhumi- Kvemo Oni Simon Svaneti 2020.08.31 Site Skhirtladze Oni 15 Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 6.429 876.6 0.086 0.020 0.005 0.314 Minimum (mg/m3) 6.038 729 0.060 0.009 0.004 0.236 Average (mg/m3) 6.284 789 0.070 0.014 0.005 0.275

Mtskheta- 2020.09.04 Site Mtianeti Village Mukhrani 16 Mukhrani Public School CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 772.2 0.051 0.015 0.010 0.472

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Minimum (mg/m3) 0.000 734.4 0.038 0.010 0.008 0.367 Average (mg/m3) 0.000 756.5142857 0.045 0.013 0.009 0.406

Shida Kartli Site 2020.09.04 Kareli 17 Kareli Public School #1 CO(mg/m3) CO2(mg/m3) NO2(mg/m3) PM10(mg/m3) PM2.5(mg/m3) SO2(mg/m3) Maximum (mg/m3) 0.000 819 0.055 0.017 0.008 0.498 Minimum (mg/m3) 0.000 810 0.024 0.007 0.006 0.079 Average (mg/m3) 0.000 813.96 0.042 0.011 0.007 0.273

Source: Consulting Company “Gergili”

Table 32: b) Results of Ambient Air Measurement (in ppm)

Arip Aliev Bolnisi Kvemo Kartli Site 1 Municipality Village Talaveri 2020.08.27 Talaveri Public School #1 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0 463 0.048 0.021 0.008 0.16 Minimum (ppm) 0 442 0 0.01 0.007 0 0.04833333 Average (ppm) 0 453.375 0.026 0.014 0.00796 3

Levan Devdariani Kvemo Kartli Site 2 Gardabani Public School Gardabani 2020.08.27 #1 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 4.99 495 0.05 0.011 0.008 0.15 Minimum (ppm) 4.51 482 0.009 0.007 0.006 0.1 Average (ppm) 4.721666667 488.6 0.031428571 0.009 0.007 0.13

Akhmeta Municipality Kakheti 2020.08.28 Site 3 Village Duisi Public Duisi School CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0 450 0.024 0.013 0.008 0.16 Minimum (ppm) 0 432 0 0.007 0.006 0 Average (ppm) 0 437.8333333 0.0096 0.009375 0.007 0.052

Kakheti 2020.08.28 Site 4 College Prestige Telavi CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 9.54 387 0.057 0.015 0.007 0.09 Minimum (ppm) 8.58 379 0.021 0.007 0.005 0.05 Average (ppm) 8.973333333 384.2 0.0386 0.01 0.006 0.068

Sighnaghi Municipality Kakheti 2020.08.28 Site 5 Tsnori Tsnori Public Schools CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm)

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Maximum (ppm) 0 495 0.027 0.031 0.006 0.1 Minimum (ppm) 0 468 0.015 0.007 0.005 0 0.05666666 Average (ppm) 0 481.6296296 0.0208 0.0122 0.0054 7

Samtskhe- Site 6 Aspindza Public School Aspindza Javakheti 2020.08.29 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 5.220 379.000 0.046 0.011 0.006 0.110 Minimum (ppm) 3.860 374.000 0.030 0.005 0.005 0.050 Average (ppm) 4.654 375.400 0.037 0.007 0.005 0.077

Samtskhe- Akhalsikh Site 7 Vale Public School # 1 Javakheti 2020.08.29 e CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 418.000 0.051 0.010 0.003 0.000 Minimum (ppm) 0.000 384.000 0.032 0.003 0.003 0.000 Average (ppm) 0.000 398.500 0.041 0.005 0.003 0.000

Achara 2020.08.29 Site 8 Keda Public School Keda CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 4.540 434.000 0.037 0.015 0.005 0.230 Minimum (ppm) 3.830 403.000 0.023 0.005 0.004 0.200 Average (ppm) 4.220 419.500 0.031 0.010 0.005 0.216

Samegrelo-Zemo Tsalenjikha Public Tsalenjik Site 9 Svaneti School #1 ha 2020.08.30 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 445.000 0.028 0.013 0.008 0.200 Minimum (ppm) 0.000 432.000 0.000 0.008 0.005 0.170 Average (ppm) 0.000 439.000 0.009 0.010 0.006 0.188

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Ramin Dikhaminjia Samegrelo-Zemo Chkhorots Site 10 Chkhorotsku Public Svaneti ku 2020.08.30 School #1 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 458.000 0.024 0.010 0.006 0.220 Minimum (ppm) 0.000 453.000 0.000 0.007 0.005 0.180 Average (ppm) 0.000 454.500 0.014 0.008 0.006 0.197

Samegrelo-Zemo Svaneti Abasha public 2020.08.30 Site 11 School #1 Abasha CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 7.450 489.000 0.047 0.122 0.121 0.270 Minimum (ppm) 5.800 468.000 0.039 0.008 0.007 0.240 Average (ppm) 6.772 481.571 0.045 0.035 0.034 0.260

Samtredia Public Samtredi Imereti 2020.08.31 Site 12 School #11 a CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 476.000 0.019 0.030 0.017 0.120 Minimum (ppm) 0.000 466.000 0.005 0.022 0.007 0.090 Average (ppm) 0.000 469.714 0.014 0.026 0.011 0.100

College Iberia in Imereti 2020.08.31 Kutaisi Site 13 partnership CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 458.000 0.035 0.157 0.024 0.060 Minimum (ppm) 0.000 447.000 0.014 0.052 0.009 0.010 Average (ppm) 0.000 451.143 0.025 0.104 0.015 0.033

Imereti 2020.08.31 College Iberia Kutaisi Site 14 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm)

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Maximum (ppm) 0.000 463.000 0.043 0.020 0.005 0.060 Minimum (ppm) 0.000 445.000 0.017 0.008 0.004 0.020 Average (ppm) 0.000 451.667 0.031 0.012 0.005 0.040

Racha- Simon Skhirtladze Oni Lechkhumi- Oni Public School Kvemo Svaneti 2020.08.31 Site 15 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 5.590 487.000 0.046 0.020 0.005 0.120 Minimum (ppm) 5.250 405.000 0.032 0.009 0.004 0.090 Average (ppm) 5.464 438.333 0.037 0.014 0.005 0.105

Mtskheta- Village Mukhrani 2020.09.04 Site 16 Mukhrani Mtianeti Public School CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 429.000 0.027 0.015 0.010 0.180 Minimum (ppm) 0.000 408.000 0.020 0.010 0.008 0.140 Average (ppm) 0.000 420.286 0.024 0.013 0.009 0.155

Kareli Public Shida Kartli 2020.09.04 Site 17 Kareli School #1 CO(ppm) CO2(ppm) NO2(ppm) PM10(ppm) PM2.5(ppm) SO2(ppm) Maximum (ppm) 0.000 455.000 0.029 0.017 0.008 0.190 Minimum (ppm) 0.000 450.000 0.013 0.007 0.006 0.030 Average (ppm) 0.000 452.200 0.022 0.011 0.007 0.104 Source: Consulting Company “Gergili”

184. According to the report, some varies in measurements are caused by different circumstances at the time of the measurement, which may be caused by traffic, burning of remaining in households’ gardens and smoke from nearby areas. Further air quality monitoring will be conducted before construction in accordance with Annex 3.

185. During construction, air quality is likely to be affected by exhaust emissions from the operation of construction machinery and dust generated exposed soils from basements. The dust may settle on trees and crops, and/or cause of respiratory stress for nearby residents. Air quality can be also affected by the special equipment, which will be installed in the workshops, and which may include a risk of exhaust system malfunctions or likely generation of toxic and hazardous waste materials. Detailed mitigation measures related to the air pollution are provided in EMP.

C. Drinking Water

186. Assessment of the drinking water has been conducted in project sites, where there is no central water supply system and instead of that reservoir or well is represented; and/or where is both the central water supply system and well or reservoir. Physico-chemical and microbiological tests of 5 water samples have been carried out in accordance with the Ordinance #58 of the GoG on the Approval of the Technical Regulation on Drinking Water to determine compliance with the requirements. The samples have been collected in Tsnori Public School #1 (water reservoir), Samtredia Public School #11 (central water supply system and well), Kareli Public School #1 (well), Village Mukhrani Public School #1 (well) and Levan Devdariani Gardabani Public School #1 (central water supply system and water reservoir).

187. Test results are provided in the tables below.

Table 33: Results of Chemical and Microbiological Examinations - Water Sample from Sighnaghi Municipality Tsnori Public School #1

Maximum Methods Permissible Determined Concentration Results by Standard Document* Odor, point 2 <2 Gost 23268.1-91 Taste, points 2 <2 Gost 23268.1-91 Color, degree 15 <15 Gost 23268.1-91 Turbidity, FTU 3.5 0.47 HACH Method 93703 Sulfate, mg/l 250 84.0 ISO 9280-1990 Chloride, mg/l 250 85.8 Gost 23268.17-1978 TPH, mg/l 0.1 <0.05 STP GL-SOP Wch- 73-G-19valid. method Hardness, mg – eq/l 7 – (10) 3.98 ISO 6059-1884 Calcium, mg/l 140 50.0 Gost 23268.5-1978 Magnesium, mg/l 85 18.0 Gost 23268.5-1978 Sodium, mg/l 200 110.0 ISO 9964-3-1993 Potassium, mg/l - 1.71 ISO 9964-3-1993

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Zink, mg/l 3 <0.003 ISO 8288-A-1986 Iron, mg/l 0.3 0.06 EPA 3005 A-92 pH 6 – 9 8.00 ISO 10523-2008 Permanganate oxidation, mg O 3 0.96 ISO 8467-93 Mineralization, mg/l (not exceeding) 1000 - (1500) 687.5 Calculation by Comp, method Barium, mg/l 0.7 <0.5 STP GL-SOP Wch- 56G-16 valid. method Boron, mg/l (total) 0.5 <0.5 ISO 9390-90 Arsenic, mg/l (total) 0.01 <0.01 Gost 4152-1989 Cadmium, mg/l 0.003 <0.001 STP GL-SOP Wch- 69-18 valid. method Manganese, mg/l 0.4 <0.02 EPA 3005 A-92 Nickel, mg/l (total) 0.07 <0.003 STP GL-SOP Wch- 69-18 valid. method Ammonium, mg/l. - <0.1 Gost 33045-14 Nitrate, mg/l 50.0 49.2 Gost 18826-1973 Nitrite, mg/l 0.2 <0.02 Gost 4192-82 Selenium, mg/l (total) 0.01 <0.01 Gost 32221-13 Copper, mg/l (total) 2.0 <0.003 STP GL-SOP Wch- 69-18 valid. method Lead, mg/l (total) 0.01 <0.01 STP GL-SOP Wch- 69-18 valid. method Fluorides, mg/l 0.7 <0.3 ISO 10259-1-1992 Chromium, mg/l (total) 0.05 <0.02 EPA 3005 A-92 Cyanide, mg/l 0.07 <0.03 HACH Method 8027 Hydrocarbonate, mg/l - 263.5 Gost 23268.3-78 Carbonate, mg/l - <0.5 Gost 23268.3-78 Pesticide content (organochlorine), mg/l 0.05 <0.01 ISO 6468-96 Aluminum, mg/l 0.3 <0.02 HACH Method 8012 Polyphosphate, mg/l 3.5 <0.02 Gost 18309-72 Mercury, mg/l 0.006 <0.00002 Contr # FM-3/22 ISO 11885:2007 Stibium (Sb) мг/л 0.02 0.0064 Contr # FM-3/22 ISO 11885:2007 Molybdenum (Mo), mg/l 0,07 0.0041 Contr # FM-3/89 ISO 11885:2007 Surfactants, mg/l 0,5 <0,1 HANNA Method Hi96769

Conductivity, S/m - 0.0939 ISO 7888-85 Microbiologic Parameters

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Mesophyle aerobes and facultative 37C  20 anaerobes (colony shaping unit/ml) 18 ISO 6222-99 22C  100 70 Total Coliforms, in 300 ml Not permitted Not detected ISO 9308-1.14 Escherichia coli, in 300 ml Not permitted Not detected ISO 9308-1.14 Streptococcus faecalis (S.faecalis), in 250 ml Not permitted Not detected ISO 6461-1:86 Pseudomonas aeroginosa, in 250 ml Not permitted Not detected ISO 7899-2-00 Sulfite- reducing Clostridia (Cl. perfringens), Not permitted Not detected in 50 ml ISO 16266-06 Pathogen microorganisms, including Not permitted Not detected ISO 19250-10 Salmonella in 100 ml Source: Scientific research firm “Gamma”

Table 34: Results of Chemical and Microbiological Examinations- Water Sample from Samtredia Public School #1

Maximum Methods Permissible Determined Concentration Results by Standard Document* Odor, point 2 <2 Gost 23268.1-91 Taste, points 2 <2 Gost 23268.1-91 Color, degree 15 <15 Gost 23268.1-91 Turbidity, FTU 3.5 0.83 HACH Method 93703 Sulfate, mg/l 250 8.8 ISO 9280-1990 Chloride, mg/l 250 9.22 Gost 23268.17-1978 TPH, mg/l 0.1 <0.05 STP GL-SOP Wch- 73-G-19valid. method Hardness, mg – eq/l 7 – (10) 5.38 ISO 6059-1884 Calcium, mg/l 140 74.0 Gost 23268.5-1978 Magnesium, mg/l 85 20.0 Gost 23268.5-1978 Sodium, mg/l 200 3.74 ISO 9964-3-1993 Potassium, mg/l - 0.83 ISO 9964-3-1993 Zink, mg/l 3 <0.003 ISO 8288-A-1986 Iron, mg/l 0.3 0.03 EPA 3005 A-92 pH 6 – 9 7.35 ISO 10523-2008 Permanganate oxidation, mg O 3 0.40 ISO 8467-93 Mineralization, mg/l (not exceeding) 1000 - (1500) 453.6 Calculation by Comp, method Barium, mg/l 0.7 <0.5 STP GL-SOP Wch- 56G-16 valid. method

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Boron, mg/l (total) 0.5 <0.5 ISO 9390-90 Arsenic, mg/l (total) 0.01 <0.01 Gost 4152-1989 Cadmium, mg/l 0.003 <0.001 STP GL-SOP Wch- 69-18 valid. method Manganese, mg/l 0.4 <0.02 EPA 3005 A-92 Nickel, mg/l (total) 0.07 <0.003 STP GL-SOP Wch- 69-18 valid. method Ammonium, mg/l. - <0.1 Gost 33045-14 Nitrate, mg/l 50.0 3.90 Gost 18826-1973 Nitrite, mg/l 0.2 <0.02 Gost 4192-82 Selenium, mg/l (total) 0.01 <0.01 Gost 32221-13 Copper, mg/l (total) 2.0 <0.003 STP GL-SOP Wch- 69-18 valid. method Lead, mg/l (total) 0.01 <0.01 STP GL-SOP Wch- 69-18 valid. method Fluorides, mg/l 0.7 <0.3 ISO 10259-1-1992 Chromium, mg/l (total) 0.05 <0.02 EPA 3005 A-92 Cyanide, mg/l 0.07 <0.03 HACH Method 8027 Hydrocarbonate, mg/l - 317.2 Gost 23268.3-78 Carbonate, mg/l - <0.5 Gost 23268.3-78 Pesticide content (organochlorine), mg/l 0.05 <0.01 ISO 6468-96 Aluminum, mg/l 0.3 <0.02 HACH Method 8012 Polyphosphate, mg/l 3.5 <0.02 Gost 18309-72 Mercury, mg/l 0.006 <0.00002 Contr # FM-3/22 ISO 11885:2007 Stibium (Sb) мг/л 0.02 0.0064 Contr # FM-3/22 ISO 11885:2007 Molybdenum (Mo), mg/l 0,07 0.0041 Contr # FM-3/22 ISO 11885:2007 Surfactants, mg/l 0,5 <0,1 HANNA Method Hi96769

Conductivity, S/m - 0.0479 ISO 7888-85 Microbiologic Parameters Mesophyle aerobes and facultative 37C  20 anaerobes (colony shaping unit/ml) 0 ISO 6222-99 22C  100 0 Total Coliforms, in 300 ml Not permitted Not detected ISO 9308-1.14 Escherichia coli, in 300 ml Not permitted Not detected ISO 9308-1.14 Streptococcus faecalis (S.faecalis), in 250 ml Not permitted Not detected ISO 6461-1:86 Pseudomonas aeroginosa, in 250 ml Not permitted Not detected ISO 7899-2-00

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Sulfite- reducing Clostridia (Cl. perfringens), Not permitted Not detected in 50 ml ISO 16266-06 Pathogen microorganisms, including Not permitted Not detected ISO 19250-10 Salmonella in 100 ml Source: Scientific research firm “Gamma”

Table 35: Results of Chemical and Microbiological Examinations - Water Sample from Kareli Public School #1 Maximum Methods Permissible Determined Concentration Results by Standard Document* Odor, point 2 <2 Gost 23268.1-91 Taste, points 2 <2 Gost 23268.1-91 Color, degree 15 <15 Gost 23268.1-91 Turbidity, FTU 3.5 <0.1 HACH Method 93703 Sulfate, mg/l 250 88.0 ISO 9280-1990 Chloride, mg/l 250 12.8 Gost 23268.17-1978 TPH, mg/l 0.1 <0.05 STP GL-SOP Wch- 73-G-19valid. method Hardness, mg – eq/l 7 – (10) 6.78 ISO 6059-1884 Calcium, mg/l 140 108.0 Gost 23268.5-1978 Magnesium, mg/l 85 16.8 Gost 23268.5-1978 Sodium, mg/l 200 37.4 ISO 9964-3-1993 Potassium, mg/l - 3.14 ISO 9964-3-1993 Zink, mg/l 3 <0.003 ISO 8288-A-1986 Iron, mg/l 0.3 0.03 EPA 3005 A-92 pH 6 – 9 7.35 ISO 10523-2008 Permanganate oxidation, mg O 3 0.24 ISO 8467-93 Mineralization, mg/l (not exceeding) 1000 - (1500) 682.0 Calculation by Comp, method Barium, mg/l 0.7 <0.5 STP GL-SOP Wch- 56G-16 valid. method Boron, mg/l (total) 0.5 <0.5 ISO 9390-90 Arsenic, mg/l (total) 0.01 <0.01 Gost 4152-1989 Cadmium, mg/l 0.003 <0.001 STP GL-SOP Wch- 69-18 valid. method Manganese, mg/l 0.4 <0.02 EPA 3005 A-92 Nickel, mg/l (total) 0.07 <0.003 STP GL-SOP Wch- 69-18 valid. method Ammonium, mg/l. - <0.1 Gost 33045-14 Nitrate, mg/l 50.0 9.75 Gost 18826-1973

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Nitrite, mg/l 0.2 <0.02 Gost 4192-82 Selenium, mg/l (total) 0.01 <0.01 Gost 32221-13 Copper, mg/l (total) 2.0 <0.003 STP GL-SOP Wch- 69-18 valid. method Lead, mg/l (total) 0.01 <0.01 STP GL-SOP Wch- 69-18 valid. method Fluorides, mg/l 0.7 <0.3 ISO 10259-1-1992 Chromium, mg/l (total) 0.05 <0.02 EPA 3005 A-92 Cyanide, mg/l 0.07 <0.03 HACH Method 8027 Hydrocarbonate, mg/l - 380.6 Gost 23268.3-78 Carbonate, mg/l - <0.5 Gost 23268.3-78 Pesticide content (organochlorine), mg/l 0.05 <0.01 ISO 6468-96 Aluminum, mg/l 0.3 <0.02 HACH Method 8012 Polyphosphate, mg/l 3.5 <0.02 Gost 18309-72 Mercury, mg/l 0.006 <0.00002 Contr # FM-3/22 ISO 11885:2007 Stibium (Sb) мг/л 0.02 0.0064 Contr # FM-3/22 ISO 11885:2007 Molybdenum (Mo), mg/l 0,07 0.0041 Contr # FM-3/22 ISO 11885:2007 Surfactants, mg/l 0,5 <0,1 HANNA Method Hi96769

Conductivity, S/m - 0.0719 ISO 7888-85 Microbiologic Parameters Mesophyle aerobes and facultative 37C  20 20 anaerobes (colony shaping unit/ml) ISO 6222-99 22C  100 120 Total Coliforms, in 300 ml Not permitted 6 ISO 9308-1.14 Escherichia coli, in 300 ml Not permitted 1 ISO 9308-1.14 Streptococcus faecalis (S.faecalis), in 250 ml Not permitted 4 ISO 6461-1:86 Pseudomonas aeroginosa, in 250 ml Not permitted 8 ISO 7899-2-00 Sulfite- reducing Clostridia (Cl. perfringens), Not permitted Not detected in 50 ml ISO 16266-06 Pathogen microorganisms, including Not permitted Not detected ISO 19250-10 Salmonella in 100 ml Source: Scientific research firm “Gamma”

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Table 36: Results of Chemical and Microbiological Examinations - Water Sample from Mtskheta Municipality Village Mukhrani Public School

Maximum Methods Permissible Determined Concentration Results by Standard Document* Odor, point 2 <2 Gost 23268.1-91 Taste, points 2 <2 Gost 23268.1-91 Color, degree 15 <15 Gost 23268.1-91 Turbidity, FTU 3.5 0.36 HACH Method 93703 Sulfate, mg/l 250 10.8 ISO 9280-1990 Chloride, mg/l 250 10.6 Gost 23268.17-1978 TPH, mg/l 0.1 <0.05 STP GL-SOP Wch- 73-G-19valid. method Hardness, mg – eq/l 7 – (10) 3.48 ISO 6059-1884 Calcium, mg/l 140 56.0 Gost 23268.5-1978 Magnesium, mg/l 85 8.2 Gost 23268.5-1978 Sodium, mg/l 200 5.61 ISO 9964-3-1993 Potassium, mg/l - 0.83 ISO 9964-3-1993 Zink, mg/l 3 <0.003 ISO 8288-A-1986 Iron, mg/l 0.3 0.02 EPA 3005 A-92 pH 6 – 9 7.50 ISO 10523-2008 Permanganate oxidation, mg O 3 0.32 ISO 8467-93 Mineralization, mg/l (not exceeding) 1000 - (1500) 301.6 Calculation by Comp, method Barium, mg/l 0.7 <0.5 STP GL-SOP Wch- 56G-16 valid. method Boron, mg/l (total) 0.5 <0.5 ISO 9390-90 Arsenic, mg/l (total) 0.01 <0.01 Gost 4152-1989 Cadmium, mg/l 0.003 <0.001 STP GL-SOP Wch- 69-18 valid. method Manganese, mg/l 0.4 <0.02 EPA 3005 A-92 Nickel, mg/l (total) 0.07 <0.003 STP GL-SOP Wch- 69-18 valid. method Ammonium, mg/l. - <0.1 Gost 33045-14 Nitrate, mg/l 50.0 3.10 Gost 18826-1973 Nitrite, mg/l 0.2 <0.02 Gost 4192-82 Selenium, mg/l (total) 0.01 <0.01 Gost 32221-13 Copper, mg/l (total) 2.0 <0.003 STP GL-SOP Wch- 69-18 valid. method Lead, mg/l (total) 0.01 <0.01 STP GL-SOP Wch- 69-18 valid. method

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Fluorides, mg/l 0.7 <0.3 ISO 10259-1-1992 Chromium, mg/l (total) 0.05 <0.02 EPA 3005 A-92 Cyanide, mg/l 0.07 <0.03 HACH Method 8027 Hydrocarbonate, mg/l - 190.3 Gost 23268.3-78 Carbonate, mg/l - <0.5 Gost 23268.3-78 Pesticide content (organochlorine), mg/l 0.05 <0.01 ISO 6468-96 Aluminum, mg/l 0.3 <0.02 HACH Method 8012 Polyphosphate, mg/l 3.5 <0.02 Gost 18309-72 Mercury, mg/l 0.006 <0.00002 Contr # FM-3/22 ISO 11885:2007 Stibium (Sb) мг/л 0.02 0.0039 Contr # FM-3/22 ISO 11885:2007 Molybdenum (Mo), mg/l 0,07 0.0033 Contr # FM-3/22 ISO 11885:2007 Surfactants, mg/l 0,5 <0,1 HANNA Method Hi96769

Conductivity, S/m - 0.0334 ISO 7888-85 Microbiologic Parameters Mesophyle aerobes and facultative 37C  20 anaerobes (colony shaping unit/ml) 0 ISO 6222-99 22C  100 0 Total Coliforms, in 300 ml Not permitted Not detected ISO 9308-1.14 Escherichia coli, in 300 ml Not permitted Not detected ISO 9308-1.14 Streptococcus faecalis (S.faecalis), in 250 ml Not permitted Not detected ISO 6461-1:86 Pseudomonas aeroginosa, in 250 ml Not permitted Not detected ISO 7899-2-00 Sulfite- reducing Clostridia (Cl. perfringens), Not permitted Not detected in 50 ml ISO 16266-06 Pathogen microorganisms, including Not permitted Not detected ISO 19250-10 Salmonella in 100 ml Source: Scientific research firm “Gamma”

Table 37: Results of Chemical and Microbiological Examinations - Water Sample from Levan Devdariani Gardabani Public School Maximum Methods Permissible Determined Concentration Results by Standard Document* Odor, point 2 <2 Gost 23268.1-91 Taste, points 2 <2 Gost 23268.1-91 Color, degree 15 <15 Gost 23268.1-91 Turbidity, FTU 3.5 <0.1 HACH Method 93703 Sulfate, mg/l 250 176.0 ISO 9280-1990

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Chloride, mg/l 250 33.3 Gost 23268.17-1978 TPH, mg/l 0.1 <0.05 STP GL-SOP Wch- 73-G-19valid. method Hardness, mg – eq/l 7 – (10) 6.18 ISO 6059-1884 Calcium, mg/l 140 86.0 Gost 23268.5-1978 Magnesium, mg/l 85 22.8 Gost 23268.5-1978 Sodium, mg/l 200 38.5 ISO 9964-3-1993 Potassium, mg/l - 2.48 ISO 9964-3-1993 Zink, mg/l 3 <0.003 ISO 8288-A-1986 Iron, mg/l 0.3 0.03 EPA 3005 A-92 pH 6 – 9 8.00 ISO 10523-2008 Permanganate oxidation, mg O 3 0.40 ISO 8467-93 Mineralization, mg/l (not exceeding) 1000 - (1500) 610.4 Calculation by Comp, method Barium, mg/l 0.7 <0.5 STP GL-SOP Wch- 56G-16 valid. method Boron, mg/l (total) 0.5 <0.5 ISO 9390-90 Arsenic, mg/l (total) 0.01 <0.01 Gost 4152-1989 Cadmium, mg/l 0.003 <0.001 STP GL-SOP Wch- 69-18 valid. method Manganese, mg/l 0.4 <0.02 EPA 3005 A-92 Nickel, mg/l (total) 0.07 <0.003 STP GL-SOP Wch- 69-18 valid. method Ammonium, mg/l. - <0.1 Gost 33045-14 Nitrate, mg/l 50.0 16.4 Gost 18826-1973 Nitrite, mg/l 0.2 <0.02 Gost 4192-82 Selenium, mg/l (total) 0.01 <0.01 Gost 32221-13 Copper, mg/l (total) 2.0 <0.003 STP GL-SOP Wch- 69-18 valid. method Lead, mg/l (total) 0.01 <0.01 STP GL-SOP Wch- 69-18 valid. method Fluorides, mg/l 0.7 <0.3 ISO 10259-1-1992 Chromium, mg/l (total) 0.05 <0.02 EPA 3005 A-92 Cyanide, mg/l 0.07 <0.03 HACH Method 8027 Hydrocarbonate, mg/l - 202.5 Gost 23268.3-78 Carbonate, mg/l - <0.5 Gost 23268.3-78 Pesticide content (organochlorine), mg/l 0.05 <0.01 ISO 6468-96 Aluminum, mg/l 0.3 <0.02 HACH Method 8012 Polyphosphate, mg/l 3.5 <0.02 Gost 18309-72 Mercury, mg/l 0.006 <0.00002 Contr # FM-3/22 ISO 11885:2007

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Stibium (Sb) мг/л 0.02 0.0059 Contr # FM-3/22 ISO 11885:2007 Molybdenum (Mo), mg/l 0,07 0.0010 Contr # FM-3/22 ISO 11885:2007 Surfactants, mg/l 0,5 <0,1 HANNA Method Hi96769

Conductivity, S/m - 0.0719 ISO 7888-85 Microbiologic Parameters Mesophyle aerobes and facultative 37C  20 anaerobes (colony shaping unit/ml) 12 ISO 6222-99 22C  100 120 Total Coliforms, in 300 ml Not permitted 7 ISO 9308-1.14 Escherichia coli, in 300 ml Not permitted 3 ISO 9308-1.14 Streptococcus faecalis (S.faecalis), in 250 ml Not permitted 16 ISO 6461-1:86 Pseudomonas aeroginosa, in 250 ml Not permitted 25 ISO 7899-2-00 Sulfite- reducing Clostridia (Cl. perfringens), Not permitted Not detected in 50 ml ISO 16266-06 Pathogen microorganisms, including Not permitted Not detected ISO 19250-10 Salmonella in 100 ml Source: Scientific research firm “Gamma.”

188. The analysis revealed the following:

(i) Water sample from Tsnori Public School #1 – Physico-chemical and microbiological parameters meet the requirements of technical regulation for drinking water. The nitrate content in the sample (49.2 mg/L) is close to the maximum permissible concentration (50 mg/L); (ii) Water sample from Samtredia Public School #11 - Physico-chemical and microbiological parameters meet the requirements of technical regulation for drinking water; (iii) Water Sample from Kareli Public School #1 - Physico-chemical parameters meet the requirements of technical regulation for drinking water, but the microbiological parameters do not; (iv) Water sample from Village Mukhrani Public School (new building) - Physico- chemical and microbiological parameters meet the requirements of technical regulation for drinking water; (v) Water sample from Levan Devdariani Gardabani Public School #1 - Physico- chemical parameters meet the requirements of technical regulation for drinking water, but the microbiological parameters do not.

189. In case of Gardabani and Kareli schools, where it was determined that the microbiological parameters do not meet the requirements, it is necessary to plan and implement the mitigation measures. Since the analyses of the water quality has been conducted on the samples obtained from the schools and there was no possibility to inspect the whole system, at this stage it is impossible to determine the exact causes of microbiological contaminations of the water. For identification the main reasons, it is recommended to repeat the analyze and conduct

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the visual audit of the water supply system to determine whether the headwork (water intake point), water pipes and/or reservoirs are damaged or contaminated and to take the samples from different section and points. In this case, it will be possible to determine whether the existing water supply needs sanitary-disinfection treatment. If it is identified that the headwork’s is supplied with already contaminated water, then this water can be used for drinking only after microbiological sterilization, such as chlorination, ultraviolet treatment or ozonation. In case of the Tsnori Public School, where the nitrate content is close to the maximum permissible concentration, it is necessary to carry out monitoring of the nitrate’s concentration in the water.

190. Detailed measures related to the improvement and maintaining of drinking water quality are provided in EMP.

D. Electromagnetic Field

191. Electrical substation (110/10 KV) is located next to the Khoni site. The shortest distance between the school building and the station equipment is about 30m and from the workshop place about 85m. According to the general calculators and assumptions, the expected level of magnetic field in 30 m distance from the station of this capacity should be less then 2 mG and the electric field level less then 0.1 kV/m. EMF baseline measurement near the school and workshop buildings should be conducted prior to the construction and EMF exposure level should be below the limits recommended by the ICNIRP.

I. Sewerage System Management 192. Part of the project selected sites, which are located in the urban areas have the central sewerage systems. In the rural areas system mainly operates on septic tanks, some of which are equipped with wastewater treatment plants, while some operate with the old system where wastewater flows into the ground and waste is periodically pumped out.

II. Solid Waste System Management 193. The solid waste management is done at the municipality level, which is managed by a special service in the municipal administrations. Sometimes the solid waste is placed in the nearest temporary landfills and then disposed in the main landfills. Waste management companies conduct waste management in landfills. In case of construction, the contractor is obliged to conduct waste management.

III. Project Sensitive Receptors 194. The construction works will be carried out within the boundaries of the project areas. As the sites are mainly located in urban areas, houses, agricultural lands, shops, and other facilities are represented around them. In some areas there is a fairly small distance between the selected site and the houses, which will be temporarily affected by noise, dust and other disturbing factors mainly during construction phase, which should be minimized by implementation of mitigation measures provided in EMP. The locations of the sensitive receptors along the project sites are provided in the Table below.

Table 38: Sensitive Receptors along the Project Sites Name of the Selected Site Type of Sensitive Receptor Location from Construction Area College Iberia in Kutaisi Store and storage, old factory Building materials store about 40 m. building on the other side of the Old factory building about 65 m road. Kutaisi State University Complex of university buildings. Sport hall about 60-70 m This is an urban area, different

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building are located around College Prestige in Telavi Located next to the State About 200-250 m. Backyard about University yard. Backyard 70-100 m surrounded by forest Telavi State University Telavi Located next to the college Next to the college yard, building in yard. Building in the backyard the backyard, to the write is forest. with inhabitants Abasha Public School #1 Yard is surrounded by Private Nearest houses next to the yard houses and agricultural lands Tsalenjikha Public School #1 Private houses and agricultural Private houses adjacent to the yard lands Chkhorotsku Public School Private houses Private houses adjacent to the yard Chiatura Public School #1 River on the other side of the River about 50 - 70 m road, private houses, shops, market Samtredia Public School #11 Private properties Around the yard Ilia Chavchavadze Sachkhere Private houses around the Kindergarten about1 km Public School #2 schoolyard. Kindergarten Terjola Public School # 2 Agricultural lands From the one side of the yard (backyard) Vani Public School #1 State owned lands, clinic, Clinic in about 300m; Kindergarten kindergarten about 150 m; River about 35 m River on the back yard Khoni Public School #3 Electrical substation Next to the yard Kharagauli Public School #2 Agricultural lands Next to the yard (Tetratskaro building) Vale Public School #1 Private properties Adjacent to the yard

Aspindza Public School Building with residents, church Building with residents in the yard, adjacent to one of the school buildings, having separate entrance Arip Aliev Bolnisi Municipality Private houses Adjacent to the yard Village Talaveri Public School #1 Levan Devdariani Gardabani Located in between of the Buildings located around Public School #1 residential houses Kareli Public School #1 Private house next to the yard, Backside of the building, outside of not adjacent to construction the yard place. Open drainage channel next to the yard Keda Public School Private houses, Kindergarten Private houses around the yard. Kindergarten adjacent to the yard Akhmeta Municipality Village Agricultural lands and one Adjacent to the yard Duisi Public Schools private house, kindergarten Sighnaghi Municipality Tsnori Private houses and Adjacent to the yard Public Schools Kindergarten Village Mukhrani Public School Private houses and stores Houses adjacent to the yard (2nd building) around Simon Skhirtladze Oni Public Private houses Private houses adjacent to the yard School Source: Technical Assistance-9790 GEO.

VI. ANTICIPATED IMPACTS AND MITIGATION MEASURES

A. Impact Assessment Process

195. The chapter provides an overview of the potential impacts of the project at the various stages of its implementation, which have been identified during field observations, secondary data reviews and ADB’s Rapid Environmental Assessment, which is provided in Annex 4.

196. The impacts were assessed in terms of both negative and positive affects according to the significance of their impact and its duration, type of impact and level of expansion. An impact assessment process was carried out for each phase of the project. Mitigation measures were designed for the unavoidable negative impacts to minimize and reduce environmental and social threats.

B. Notion of Significance

197. The term “environmental impact” or simply “impact” covers the negative, adverse or harmful as well as positive, desirable or beneficial impacts of the project on environmental settings. Prediction of impacts of the proposed activity is based on factual data; however, the significance of these impacts involves a value judgment technique. The nature of the impacts may be categorized in terms of:

(i) Direction - Positive or Negative; (ii) Duration - Long or Short Term; (iii) Effect - Direct or Indirect; and (iv) Extent - Wide or Local.

198. Impact significance depends on both the nature of the impact and on the sensitivity of the receptor. The more sensitive the receptor, the greater will be the significance of impact from that proposed activity. For this IEE, activities and nature of impact are combined with the sensitivity of the receptor to evaluate the significance of the impact. The significance of impact can be characterized as very low, low, moderate, high, and very high. Environmental issues having “moderate”, “high” and/or “very high” significance is provided with mitigation measures.

C. Methodology for Impact assessment

199. The impact was evaluated based on the likely effects of project activities on the different environmental parameters. Assessment was conducted based on the initial field observations and secondary data assessments.

D. Positive Impacts

200. The project has several positive impacts, such as the development of VET education system, socio-economic development, including assistance to women and vulnerable groups in the implementation of short-term VET programs for women and vulnerable groups.

E. Potential negative impacts at the pre-construction phase

201. Potential negative impacts at the project pre-construction phase and corresponding mitigation measures are provided below.

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a. Safeguards related issues

202. Safeguards related issues may not be fully reflected in IEE and generic EMP and not properly considered during planning and implementation of the project activities. The impact is high and the likelihood is moderate.

203. Mitigation measures:

(i) Review of IEE and update of EMP in case of changes in the list of the project selected sites and/or other important circumstances.

204. The bidding documents may not be responsive to the safeguards related issues and performance of the contractor can be low. The impact is high and likelihood is moderate.

205. Mitigation measures:

(i) Include all safeguards related clauses and integrate IEE and EMP into the bidding documents. (ii) Contract provisions should contain health and safety issues, including a specific COVID-19 risk management plan (as part of the HSP and ERP), showing that the type of arrangements and measures the contractor will take to address this risk.

206. Safeguard incompliances can be observed in different places during the implementation of civil works. The impact is high and likelihood is moderate.

207. Mitigation measures:

(i) Preparation of site-specific EMPs, taking into account environmental and social safeguards issues and potential impacts on sensitive receptors and corresponding mitigation measures. (ii) Assess and conformation of the COVID-19 specific HSP and ERP submitted by contractor before commencement of the works.

b. Issues with construction regulations and permits

208. There is a risk that incompliance with construction standards and regulations and lack of necessary permits for the construction related works may arise. Impact is high and likelihood is moderate.

209. Mitigation measures:

(i) Agree design and construction related works with all relevant institutions; (ii) Obtain necessary permits from relevant state institutions if required. (iii) Particular attention to the construction near the sensitive receptors, high voltage power lines, railways, or other facilities.

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c. Traffic related issues

210. Design may skip the provisions related to traffic regulation and vehicle movement. The impact is high and likelihood is moderate. 211. Mitigation measures:

(i) Develop traffic management frameworks prior to the commencement of works.

d. Designing issues

212. Non-optimized design of the workshops may cause adverse environmental impacts at the construction and operational phases. The impact is high and likelihood is moderate.

213. Mitigation measure:

(i) Taking into account the environmental and social safeguards aspects when planning the design of workshops; (ii) Consider green building concepts for workshops design; (iii) Taking into account the existing vegetation cover when selecting the construction area, in order to avoid cutting of trees and other plantations as much as possible; (iv) Consideration of design alternatives to minimize adverse environmental impacts at the construction and operational phases; (v) Ensure energy efficiency of buildings to reduce resource utilization and emissions during its operation.

e. Delays in learning process

214. Unpreparedness of teachers and students and local communities and delay of the educational process, caused by ongoing civil works. The impact is high and likelihood is moderate.

215. Mitigation measure: (i) Informing of stakeholders in advance on the start of the civil works.

F. Potential negative impacts at the construction phase

216. Potential negative impacts at the construction phase and corresponding mitigation measures are provided below:

a. Noise and vibration

217. Noise and vibration will occur because of the movement of vehicles, construction equipment and other construction activities in the selected areas. Noise level may be particularly high during the construction phase in areas where new buildings are planned to be constructed, e.g on the sites of Kutaisi, Telavi, Abasha, Chkhorotsku, Tsalenjikha, Samtredia, Terjola, Vale, Bolnisi, Gardabani, Kareli, Keda, Duisi, Tsnori, Mukhrani and Oni. This will affect as the construction sites themselves, as well as the sensitive receptors nearby. Noise will occur during the rehabilitation of existing infrastructure, which will mainly affect the internal parameter

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of the building and the yard, such as the sites in Kutaisi, Telavi, Chiatura, Kharagauli, Sachkhere, Vale, Khoni. Vibration can particularly affect areas where rehabilitation work is planned within the existing old buildings, such as the site of Kutaisi University and Gardabani Public School, and the sensitive receptors with old infrastructure located near to different sites. Both impacts are moderate, and the likelihood is high.

218. Mitigation measures:

(i) Carry out construction work mainly during vocations and the time free from learning process to avoid disruptions of the educational process and to minimize impacts on the sensitive receptors nearby; (ii) Avoid construction activities during operation of different sensitive receptors, such as kindergartens and other educational facilities, hospitals etc. e.g. Tsnori and Keda sites; (iii) No or limited nighttime and weekend works and ensure operation of heavy equipment during the day; (iv) Avoid movement of vehicles and machineries near the cultural heritage sites and the sensitive receptors as much as possible, especially in the areas where the sensitive receptors are particularly close, e.g. Gardabani, Aspindza, Tsnori, Keda sites; (v) Limited number of machineries used at the same time; (vi) Avoid noise as much as possible when reloading trucks; (vii) Install acoustic enclosures and noise isolation around construction areas; setting up local hoardings, screens or barriers to shied particularly noisy activities in Kutaisi, Telavi, Abasha, Chkhorotsku, Tsalenjikha, Samtredia, Terjola, Vale, Bolnisi, Gardabani, Kareli, Keda, Duisi, Tsnori, Mukhrani and Oni sites; (viii) Provide hearing protection devices against noise; (ix) Assess the infrastructure stability at the detailed design stage; special attention shall be paid to Kutaisi State Universty with old building and Gardabani site, where the school building is very old, with cracks on the walls; (x) Use a damper to absorb vibration; (xi) Use of modern machinery and equipment compliant with sound and vibration standards; (xii) Carry out ctivtiies by taking into account permissible noise and vibration standards; (xiii) On-site monitoring of noise and vibration level.

a. Electromagnetic Fields Exposure

219. Risk of the EMF exposure from the electrical substation located next to the Khoni site. The impact is high and likelihood of high exposure level is low.

220. Mitigation measures:

(i) Ensure that the EMF exposure level is below the limits recommended by the ICNIRP; (ii) EMF baseline measurement near the school and workshop buildings prior to the construction.

b. Air pollution

221. Air quality may decline due to increased traffic volume, movement of construction

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machinery and generation of dust from construction activities. This can affect the construction site itself as well as the nearby sensitive receptors. The impact and likelihood both are high.

222. Mitigation measures: (i) Conduct 24-hour air quality measurements at least on the CO parameter, where a preliminary assessment (based on the 5-7 minutes measurement) determined its higher concentration, e.g. Gardabani, Telavi, Aspindza, Keda, Abasha and Oni; and Ozone (O3) measurement (daily max.8 h) in each site; (ii) Develop a dust suppression scheme prior to construction; (iii) Use of separate gates for trucks and vehicles to access the ground and avoid them as much as possible from sensitive receptors, special attention should be paid to Gardabani, Aspindza,Tsnori, Keda sites; (iv) Use well-developed technology and equipment and maintain their quality; (v) Ensure that emissions are minimized by cleaning of fuel injectors; (vi) Refuel vehicles by using of fuel nozzles and pumps to prevent fugitive emissions of volatile organic compounds; (vii) Avoid dust generating activities on strong windy days; (viii) Use of water dust suppression during dry weather; (ix) Covering vehicles when transporting construction materials; (x) Limiting the speed of vehicle when transporting materials; (xi) Remove demolished materials from the site as soon as possible; (xii) Use exhaust ventilation where possible; (xiii) Conduct air quality monitoring at construction sites.

c. Construction waste

223. Generation of solid waste and wastewater may be high due to construction activities. The impact is high, and likelihood is also high.

224. Mitigation measures: (i) Develop and agree on a waste management plan for each site prior to the commencement of civil works; (ii) Develop a materials management plan prior to construction; (iii) Minimization of waste generation; (iv) Waste collection, treatment and disposal in accordance with the accepted standards; (v) Allocation of special area in each site for construction and demolition debris; (vi) Maintain photographs of the area, designed as the disposal site and restore the area construction is complete. (vii) Timely disposal of waste at the nearest official landfill agreed with local municipalities (viii) Sending of old metal equipment to scrap collection points.

d. Soil and water contamination

225. There is a risk of soil and water contamination due to spill of fuel, oil, toxic chemicals, cement, and other construction material. Impact is high and likelihood is low.

226. Mitigation measures:

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(i) Avoid spilling hazardous materials, such as fuel, oils ad other substances, and store them accordance with accepted standards (using a secondary containment system and impermeable base liners). (ii) Ensure labeling of stored material; (i) Placing excavation materials in approved locations; (ii) Maintenance of vehicle and other equipment only in the originally designated areas; (iii) Coverage of trucks used for transportation; (iv) Carry out regular technical inspection of vehicles, especially for fuel, oil and battery fluid leakage; (v) Prevention of rives contamination by construction material; particular attention should be paid to the Chiatura and Vani sites, due to its proximity to the river.

e. Traffic jam

227. Temporary traffic congestion is expected in the vicinity of construction sites due to the increased number of vehicles and movement of construction equipment. The risk of traffic jams is mainly related to urban and densely populated areas, such as Kutaisi, Tekavi, Mukhrani, Gardabani, sites. The impact is moderate, and likelihood is moderate.

228. Mitigation measures: (i) Develop a traffic regulation plan including vehicles movement scheme for each site and act accordingly; (ii) Provide traffic control equipment; (iii) Avoid moving vehicles next to the residential houses as much as possible and use alternative entrances (special attention should be paid to the site in Gardabani); (iv) Avoid transportation during rush hours; (v) Repair of damaged areas, if any.

f. Asbestos containing material

229. There is a risk of using asbestos containing materials (ACM) during construction works. The rehabilitation process may involve removal of hazardous materials from the old buildings. During filed observations, asbestos containing materials were found on a large number of sites, mainly for roofing old auxiliary storages in the schoolyards. The impact and likelihood both are high.

230. Mitigation measures:

(i) ACM shall not be used as a new material for rehabilitation of existing facilities or in construction of new ones; (ii) Removal and disposal of existing asbestos-roofing sheets in accordance with the internationally recognized standards and state regulations; (iii) Removal activities to be scheduled during student’ absence time; (iv) Equip workers with special equipment.

g. Excavation at construction site

231. Construction of new buildings/workshops may include excavations at construction sites,

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which may lead to soil stability, health and safety issues. In addition, this process can cause damage to archeological specimens and underground objects. Impact Is high and likelihood is moderate.

232. Mitigation measures:

(i) Determining the exact location of the excavations in Kutaisi, Telavi, Abasha, Chkhorotsku, Tsalenjikha, Samtredia, Terjola, Vale, Bolnisi, Gardabani, Kareli, Keda, Duisi, Aspindza, Tsnori, Mukhrani and Oni; (ii) Estimate the volume of excavation material; (iii) Avoid extra land excavation; (iv) Limited movement of vehicles used for excavation; (v) Implement erosion protection measures; (vi) Installation of barricades and special signboard; (vii) Excavation in accordance with a specific requirement without damaging the underground facilities; (viii) Immediate stop of activities in case of discovery of architectural objects and informing the MOESCS.

h. Damage of utility supplies

233. In the process of temporary relocation of utility supplies during the works, there is a risk of their possible damage. Impact is moderate and likelihood is moderate.

234. Mitigation measures: (i) Perform the activity carefully and in a timely manner; and (ii) Involve all relevant structures.

i. Impact on flora and fauna species and their habitats

235. There is a risk of direct or indirect impact on flora and fauna species and their habitats, which may be caused by construction activities. Impact is high and likelihood is moderate.

236. Mitigation measures: (i) Assessment the area and avoid environmental sensitive areas during construction; (ii) Avoid building in a place covered by trees or other vegetation; (iii) Avoid works in areas populated by important wildlife species; (iv) Obtaining of special permits in case of necessary cutting or trees and other vegetation (MOEPA, local authorities); (v) Planting to compensate damage appropriate ratio and in accordance to the regulations; (vi) Develop alternative designs as needed.

i. Drinking water quality issues 237. Drinking water may not meet the requirements of technical regulation for drinking water. The impact and likelihood are both high.

238. Mitigation measures:

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(i) Supply workers with bottled water during the construction period, especially in project areas where the assessment revealed that the drinking water quality does not meet the requirements of technical regulation on drinking water, e.g microbiological contaminations in Kareli and Gardabani Public Schools; (ii) Improving drinking water quality in Kareli and Gardabani Public Schools through: • Visual inspection of the water supply system to determine weather the headwork (water intake point), water pipes and/or reservoirs are damaged or contaminated and sampling from various sections and points of the Gardabani and Kareli schools, where it was determined that the microbiological parameters do not meet the requirements; • Elimination of technical damages if detected on pipes and reservoirs; • Microbiological sterilization of water by chlorine, ozone or ultraviolet treatment in case of headwork’s contamination.

j. Occupational health and safety issues

239. Due to risks associated with physical, chemical, biological hazards during the construction phase of the project, several occupational health and safety issues may arise. The widespread pandemic of COVID-19 can also cause several health issues, including physical injuries of workers or other people. Impact is high and likelihood is moderate.

240. Mitigation measure:

Develop an emergency response plan; (i) Provide the camp with separate toilets (preferable bio toilets) and provide health and safety equipment (uniforms, helmets, goggles, sun-protection equipment etc.), first aid kits, including snake venom drugs and bee venom antidotes; (ii) Provide trainings to workers on health and safety issues.

241. Public health safety risks caused by improper fencing. Transmission of diseases (including COVID-19) from workers to community and vice versa. Impact is high and likelihood is moderate.

242. Mitigation measures: (i) Ensure appropriate fencing of the area; (ii) Carry out activities remotely from the public; (iii) Compliance with the COVID-19 guidelines of the Government of Georgia and ADB.

k. Restoration of construction site

243. Construction or rehabilitation works will impact the existing environment, including utilities and landscape. Both impact and likelihood are moderate.

244. Mitigation measures: (i) Develop a rehabilitation and restoration plan for each site to repair/restore damage prior to leaving the site; (ii) Disposal of materials used for construction or rehabilitation in accordance with accepted standards and specific plans; (iii) Restore area as an equal to the original conditions (iv) Compensate damage to biodiversity if any.

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G. Potential negative impacts at the operational phase

245. Potential negative impacts at the operational phase are described below.

a. Noise and vibration

246. Noise and vibration in the workplace can be caused by mechanical impact, air or fluid flow and the vibrating surfaces of a machine. The impact is high and likelihood is high.

247. Mitigation measures: (i) Designing walls, floors, doors, and windows providing sound transmission loss and cover ceilings and walls with sound-absorbing materials, especially in woodworking workshops in Abasha, Terjola, Kharagauli, Tsnori and Oni sites (ii) Remove noise sources from teachers and students by installing sound-proof barriers and providing buffer zones in woodworking workshops of Abasha, Terjola, Kharagauli, Tsnori and Oni sites; (iii) Installation of heavy bases for noisy equipment and isolate them from other equipment in woodworking workshops in Abasha, Terjola, Kharagauli, Tsnori and Oni sites; (iv) Select equipment that does not exceed the permissible noise and vibration permissible limits and equip them with silencers and dampers. Special attention should be paid to the site in Gardabani, where the school building is very old and Kutaisi State University, Duisi, Keda sites; (v) Reduce outdoor noise in buildings by using sound-absorbing materials such as soundproofing panels or drywalls or reinforce frames through open cell foam and by installing doubled glass windows in particular at Mukhrani and Kutaisi College sites, where the baseline measurements revealed the high noise level; (vi) Operation of workshops during the day; (vii) Noise and vibration level monitoring.

b. Toxic and hazardous waste

248. Hazardous waste generation and air pollution are considered as potential impacts caused by operation of different workshops. In the woodworking workshops planned at Abasha, Terjola, Kharagauli, Tsnori and Oni sites, may be generated sawdust in large and fine particles, which can hang in the air for a long time and cause serious health problems. Culinary workshops planned in Vale, Duisi, Chkhorotsku, Kareli, Keda, Sachkhere, Samtredia and Khoni sites may involve the risk of exhaust system malfunctions, which have a negative effect on health and pose a serious risk of fire. Impact is high and likelihood is moderate.

249. Mitigation measure: (i) Collect waste in appropriate containers to prevent possible spillage and emanation; (ii) Disposal of waste generated at various workshops in according with regulations; (iii) Provide equipment with appropriate filters and other necessary technical means; (iv) Installation of appropriate exhaust system equipped with special fire protection means in culinary art workshops in Vale, Duisi, Chkhorotsku, Kareli, Keda, Sachkhere, Samtredia and Khoni sites. Ozone generators and UV treatments can be also used, but only on the basis of a preliminary analysis of its

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expediency, as it needs regular maintenance compensated by reduced frequency of duct cleaning and risk of fire; (v) Installation of exhausting ventilation system for each student work table in the wooden workshop to prevent toxic fumes from solvents and paints in Abasha, Terjola, Kharagauli, Tsnori and Oni sites; (vi) Installation of wood dust collector and regular cleaning the machinery in each wood-processing workshop, e.g. in Abasha, Terjola, Kharagauli, Tsnori and Oni sites; (vii) Arrangement utility sink for cleaning the special equipment in wood processing workshops and in culinary art workshops in Abasha, Terjola, Kharagauli, Tsnori and Oni, Vale, Duisi, Chkhorotsku, Kareli, Keda, Sachkhere, Samtredia and Khoni sites; (viii) Work out the waste disposal plan for pharmaceutical workshop in Kutaisi State University.

c. Drinking water Issues

250. Drinking water quality may not meet the requirements of technical regulation on drinking water. Impact and likelihood both are high.

251. Mitigation measures: (i) Periodic monitoring of water quality in each project site; special attention to Kareli and Gardabani Public Schools; (ii) Periodic monitoring of nitrate level in Tsnori Public School, where according to the preliminary assessment, the nitrate content was close to the maximum permissible concentration; (iii) Periodic monitoring of water quality with portable test kits measuring the free chlorine in the water.

d. Occupational health and safety issues

252. Several health and safety issues may arise for trainers and students working in specific workshops.

253. Mitigation Measures: 1. Equip workshop ventilation and related system with UV air filters to prevent the risk of spreading infections; 2. Prevent taking of high-risk containing material (flammable, toxic, explosive and high voltage equipment) in each site, especially in electronics and robotics workshops; Spatial attention to Kutaisi, Vale, Duisi, Aspindza, Chiatura, Chkhorotsku, Kareli, Kharagauli, Tsnori, Tsalenjikha, Vani, 3. Allocate separate space for servers and UPS devices, isolated from students and teachers in ICT workshops. Spatial attention to Telavi, Abasha, Bolnisi, Gardabani, Keda, Mukhrani, Oni, Sachkhere, Samtredia, terjola, Khoni 4. Develop an emergency plan for each workshop place; 5. Equip students and trainers with appropriate personal protective equipment, such as safety goggles, hearing protectors, respirators/masks etc. 6. Wearing appropriate clothing; 7. Use of equipment, machinery and tools in safe conditions; 8. Equip workshops with first aid kits; 9. Install emergency lightening, fire detecting and alarm systems and provide

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firefighting equipment; 10. Use of high standard electrical installations/equipment; 11. Install power isolators; 12. Install sockets, plugs and cables in safe places; 13. Train students and teachers in machinery and equipment protection; 14. Train students and teachers on health and safety issues and inform them how to act in case of accidents.

VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. National Regulations

254. Issues related to the public participation in decision-making process are regulated under the Environmental Assessment Code of Georgia (2018). According to chapter IV of the Code, the public may participate in decision-making processes and it shall be ensured i.e., (i) in decision-making related to activities subject to an EIA; (ii) in decision-making related to strategic documents subject to a strategic environmental assessment; and (iii) in the case of the performance of transboundary environmental impact assessment procedures. A competent administrative body is obligated to (i) ensure the timely, efficient and adequate provision to the public of information on the initiation of administrative proceedings provided for by this Code and on the possibility of public participation in such public administrative proceedings; (ii) ensure public access to documents provided by this Code; (iii) ensure public participation in reviews and the possibility for the public to submit their opinions and comments; (iv) ensure that opinions and comments presented by the public in decision-making processes and the results of public reviews are taken into account, and the informing of the public of the decisions made and access thereto under procedures established by the legislation of Georgia. Information on the holding of public reviews shall be posted on the websites and in widely circulated newspapers, especially in the territory, which is subject to a potential impact, which can be accessed by the public. A notice on the holding of public hearings shall include all relevant information.

255. Third National Environmental Action Program of Georgia (NEAP -3) is approved by the decree of the Government of Georgia in 2018, for a five-year period pursuant to the Law on Environmental Protection. The document reflects the views of the EU – Georgia Association Agreement Goals, UN Sustainable Development Goals, and other treaties, where Georgia is a party and National Policies and Strategies Framework for environmental protection and management. The document identifies the environmental priorities of Georgia and establishes strategies for long-term goals, targets and activities required to improve the environment and is the main strategy document of the Ministry of Environment Protection and Agriculture, contributing to the implementation of environmental policy. According to the document: “Awareness of the various interest groups and the general public on environmental issues, on their role in shaping environmentally conscious and responsible society, as well as their right to participate in the decision-making process is crucial. Effective public participation can be achieved only through the proper environmental education system—both formal and informal”.

256. Georgia has ratified Convention on Biological Diversity (1992) in 1994 and the Strategic Plan for Biodiversity 2011-2020 of the Convention in 2010, which includes 20 targets (Aichi Biodiversity Targets). Regarding the obligation imposed to the parties by the convention, Georgia approved the first National Biodiversity Strategy and Action Plan (NBSAP) in 2005, which was updated and adopted in 2014, by the decree of the Government of Georgia (NBSAP- 2) reflecting the Strategic Plan for Biodiversity and Aichi Targets. Therefore, 20 national targets for safeguarding Georgia’s biodiversity are grouped under global biodiversity targets and each is relevant to the Aichi Targets. Strategic Goal E of the Aichi Biodiversity Targets on enhancing implementation through participatory planning, knowledge management and capacity building include the target 18 according to which: “by 2020, the traditional knowledge, innovations and practices of the endogenous and local communities relevant for the conservation and sustainable use of biodiversity, and their customary use of biological resources, are respected, subject to national legislation and relevant international obligations, and fully integrated and reflected in the implementation of the Convention, with the full and effective participation of indigenous and local communities, at all relevant levels”. The goal is also reflected in the

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NBSAP-2 of Georgia.

B. International Regulations

257. Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (Aarhus Convention, 1998) is ratified by Georgia in 2000. By ratifying the act, Georgia has committed itself to implement the three elements of the convention and the principles of good governance: (i) access to the information; (ii) public participation in decision-making process and (iii) access to justice in environmental matter. According to the provisions of the convention, the public participation process shall include reasonable timeframes allowing sufficient time for informing the public to participate effectively at an appropriate stage in the environmental decision process, when all options are still open and decisions can be done based on the outcomes of public participation.

258. According to the United Nations Declaration on Free, prior and Informed Consent of Indigenous People (FPIC 2013), which is an outcome of the UN Declaration on the Rights of Indigenous people, and defined by United Nations Permanent Forum on Indigenous Issues, enables people to be informed sufficiently in advanced about the projects that might effect territories, lands or resources they own or use traditionally and insures their access on each project key point, including economic, environmental and cultural impacts. FPIC states the right of people to be part of decision-making process and insures their self-directed participation.

259. According to the ADB Safeguards Policy Statement, consultation requirements imply the need for prior and informed consultation with affected persons and communities in the context of safeguard planning and for continued consultation during project implementation to identify and help address safeguard issues that may arise. The borrower/client is required to take out meaningful consultation with affected persons and communities in the implementation of all three-safeguard policies. Meaningful consultation is a process that: (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

C. Public Consultations in the Frame of the Project

260. Due to COVID-19, a mixed approach was used for the consultation meetings. Despite strict restrictions on large public gatherings caused by virus, the Technical Assistance team managed to meet with people in the field by taking into account and adhering to all international and national standards and requirements set for preventing the spread of the virus. Part of the meetings were conducted online. Consultation process was carried out in all project-selected sites, between June and December 2020, with about 180 people (more than 70% of women participants) - representatives of the selected VET institutions, local authority, local community members and other relevant stakeholders attended the meetings. Photos of the meetings are provided in Annex 6. List of people attended the meetings is provided in Table 39. Public hearing and information disclosure process will continue at the project implementation stage.

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Table 39. List of People Attended Consultation Meetings Name Surname Position Samtredia Public School (12.07.2020) Nanuli Manjgaladze School Director Madlena Mgaloblishvili Community representative David Kokhreidze School employee Sopho Kokhreidze Graduate student Jumber Mgaloblishvili Community Representative Avtandil Melkadze Cafeteria Manager Tamar Gegeshidze Community Representative Svetlana Toronjadze Community Representative Khatuna Katsadze Community Representative Giorgi Melkadze Community Representative Rajden Andguladze Security Manager Khoni Public School (12.07.2020) Vera Beridze School Director Ilia Kuparadze Head of Special Planning, Architecture, Infrastructure, Transport and Amenity service of the city hall Shalva Kintsurashvili Community representative Shorena Nikoleishvili Math teacher Ana Chikovani Community Representative Shorena Kavzinadze Math teacher Merab Chikovani School Material and Technical Support Coordinator Tsalenjikha Public School (11.07.2020) Badri Bobokhia School Director Bejan Shanava Head of the internal audit service of the city hall Oleg Salia Redactor of Newspaper “Egrisi” Davit Tsanava Community Representative, parent Gigla Saria Community representative, parent Nino Kalandia Physic Teacher Marine Kalandia History Teacher, parent Lela Abuladze Deputy Director Ekaterine Shelia Math teacher Irma Apshilava English Language teacher Chkhorotsku Public School (11.07.2020) Manana Chikovani School Director Tea Kvaratskhelia Community Representative, teacher Rusiko Kvaratskhelia Community Representative, teacher of Maia Sichinava Chemistry Teacher Manana Kacharava teacher Abasha Public School (12.07.2020) Dodo Dolidze School Director Gia Koiava Community Representative Nino Bokuchava Community Representative Tea Comaia School case Manager Madlena Meskhia Primary school teacher Rusudan Rusia Math Teacher Nino Tedoradze Community Representative Vale Public School (11.07.2020) Ira Giorgadze School Director

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Nana Kusiani Deputy Director Liana Gozalishvili Assistant of Municipality Representative in Vale Administrative unit Maguli Manvelishvili School case manufacturer Ketevan Sarishvili Teacher of biology Ketevan Giorgadze Teacher of chemistry Laura Gogoladze Teacher of mathematic Guram Merabiashvili Safeguards specialist Giorgi Giorgadze Security service Terjola Public School (02.08.2020) Rusudan Usupashili Director Vano Khujadze Bank employee Giorgi Khujadze Shop assistant Nana Kvantidze Community member Dali Buskivadze Community member Spartaki Dolakidze Engineer Nino Gelashvili Teacher Gia Sirbiladze Community member Gia Charkviani Community member Raindi Areshidze Community member Nana Robakidze Employee Aspindza Public School (02.08.2020) Klara Zedginidze Director Vartiter Kirkitadze Community member Nora Zaridze Community Member Nino Tsertsvadze Community Member Nino Balakhashvili Community member Temur Rijhamadze Community member Tristan Muradashvili Head of Recourse center Mukhrani Public School (02.08.2020) Sopio Kublashvili Director Mariam Sharipashvili Teacher Tamila Salbishvili Techer, community member Lali Bancuri Teacher, community member Nino Zurabishvili Techer, community member Tamar Khvtisiashvili Teacher, community member Nino Khuroshvili Teacher, community member Nanuka Zeikidze Teacher, community member Mariam Kemkhashvili Teacher, community member College in Telavi (03.08.2020) Konstantine Dolidze Director Teo Khatiashvili Financial Manager Ia Nadiradze Deputy Director Naira Chincharashvili Quality Management Manager Maka Kiknadze Learning process and learning practice manager Vasil Kiknadze Procurement Specialist Davit Kukunashvili Business Manager Tamar Aivazovi Business Manager Mariam Gognadze Employee Liana Chavchanidze Community Member College in Kutaisi (03.08.2020) Irakli Avaliani Director Irakli Karkashadze Kutaisi Deputy Mayor Archil Svanidze Technical manager

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Nugzar Khujadze Hear of the program Iuri Meskhoradze Hear of professional development program Mamuka Kruashvili Founder Mariam Bitsadze Community representative

Oni Public School (30.11.2020) Dali Razmadze Director Shorena Gagnidze Deputy Director Davit Chikvaidze Mayor of Oni Municipality Eka Maisuradze Deputy Mayor of Oni Municipality Teona Sherazadishvili Teacher Tamar Chikhladze Teacher (Inclusive education specialist)

Keda Public School (30.11.2020) Tamar Tavdgiridze Director Salome Khabazi Community member Irina Turmanidze Community member Sofo Sharashidze Community member Melania Mamuchadze Teacher Donari Akvazba Community member Nestani Shervashidze Teacher Lela Asambadze Community member Shorena Bajelidze Community member Tsira Gvarishvili Community member Mzia Azaridze Community member Irina Lominadze Community member Ekaterine Kajaia Community member Nana Baramidze Community member Ia Kakhidze Community member Natia Takidze Teacher Irma Diasamidze Community member Tamila Turmanidze Community member Tamriko Abuladze Community member Iamze Diasamidze Community member Maiko Basiladze Community member Mzevinar Tsintsadze Community member Maia Bolkvadze Community member Sachkhere Public School (30.11.2020) Lena Gomarteli Director Marekhi Kutaladze Deputy Director Gvantsa Dekanoidze Community member Inga Mosiashvili Teacher Keti Parkosadze Teacher Maka Nebieridze Community member Tamriko Sukhishvili Teacher Kareli Public School (01.12.2020) Mariam Sazandrishvili Director Zurab Jushoshvili Teacher Tina Goderdzovi Community member Shorena Chikinashvili Community member Gela Kalmakhelidze Community member Koba Kalmakhelidze Community member Vani Public School (01.12.2020)

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Valeri Kankadze Director Makvala Kurashvili Deputy Director, Community member Tamta Beltadze Teacher Natalia Abramidze Information manager Teona Julayidze Teacher Tiko Lagidze Teacher Nanuli Kakhadze Teacher Irma Sharashenidze Teacher Natia Merkviladze Teacher Gardabani Public School (01.12.2020) Nana Taralashvili Director Eliso Kardava Teacher, Community member Ekaterine Jokhadze Teacher, Community member Nino Onioni Teacher, Community member Tsnori Public School (02.12.2020) Lia Butliashvili Director Maia Dzmanashvili Deputy Director Eteri Mateshvili Teacher, Community member Ia Khachiashvili Information manager Chiatura Public School (02.12.2020) Gocha Shubitidze Director Maia Kamushadze Deputy Director Levan Samkurashvili Administrator Eliso Bliadze Teacher Eliso Kupatadze Teacher Nana Megrelishvili Teacher Natia Sikinchalashvili Teacher Maiko Kekelia Community member Lia Kapanadze Community member Duisi Public School (02.12.2020) Lili Sviakauri Director Lia Khangoshvili Administration member, community member Tamar Mmaulashvili Administration member, community member Dali Borchashvili Administration member, community member Shalva Margosvili Community member Kharagauli Public School (02.12.2020) Tea Talakhadze Teacher Marine Vepkhvadze Teacher Mzia Kvinikadze Techer Rusudan Tabagari Techer Makvala Suliauri Techer Iamze Dekanosidze Teacher Madona Ulumbelashvili Deputy Director Bolnisi, Talaveri Public School (02.12.2020) Jumshrud Gulmamedov Director Vusala Bairamova Teacher, community member Natig Alievi Alievi Teacher Nuradin Budagovi Teacher, community member Nazaket Poladova Teacher Rena Geushova Teacher Source: Technical Assistance-9790 GEO.

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a. Summary of the Discussion with the Stakeholders

261. The main objective of the meetings was to inform people about the project and provide them with information on likely environmental and social impacts and potential disturbance factors which may occur during the construction and/or operational phases and to receive their feedback, opinion and/or possible concerns related to project activities. Representatives of the pre-selected site administrations and students were also involved in the process of selection of the relevant educational programs for the skills hubs or general education schools, considering the local context, priorities, and experiences.

262. All the people attended the meetings, expressed a very high interest in project implementation. Discussion points were very similar in each project area. No concerns were expressed about the safeguards related aspects. The summary of the questions asked during the meetings is provided in the table below.

Table 40. Summary of the Discussion with the Stakeholders

Expressed opinion/Question Answer Approximate frequency of question/opinion according the sites Local Authority representatives expressed their Noted 100% where they full readiness to contribute to the attended implementation of the project Participants of the meetings stressed the need Noted 100% to develop vocational education in the regions, which they say will promote employment process and hinder the migration process Participants highlighted the issues related to Noted 40% lack of professional staff in the regions School administration noted that each Noted 20 % workshop needs to be equipped with separate toilets, in order to avoid learning process obstructions in the schools Questions about the tuition fee (quite common) Professional education is 70% free in Georgia. Tuition will be free and state funded Questions about program durations Depends on the program 60% and its design, average duration will be 18 months Age of students able to get professional From the age of 15, 60% education upper limit is not defined Questions whether the courses will be certified Certificates will be issued 30% and what type of certificated will be issued for short-term courses, while long-term courses graduates will get diploma Questions about the target students and if Everybody can get 40% people from other regions can benefit benefit out of the program, not site-specific High interest was expressed about the trainers Local teachers will be 90 %

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employed as trainers, in case of skill hubs teachers may get training of trainers, which may be conducted by international trainers Questions on program directions, specific Information is provided 100% interest on handicrafts, culinary, woodworks, stylist directions Question on the school benefit The basic education 20% schools will become professional education providers with authorized programs, and they will receive a comprehensive assistance package from the program Questions on the program management (who Skill hubs or school 30% will manage and administrate the program) administrations will get special trainings to increase the capacity in management of professional education institutions Questions on operational costs, including Operational costs will be 40% maintenance budget covered by the government. Developed institutions will get special vouchers for each student and the operational budget Questions about the start time of the work Depends on the site 60% availability and readiness, generally starts in 2021 Source: Technical Assistance-9790 GEO.

D. Disclosure Requirement and Procedures

263. The project executing agency MOESCS will disclose this IEE and EMP to all the stakeholders before the commencement of the proposed project. The IEE report will be made available to the stakeholders in line with the Georgian legislation. The Final IEE report will also be disclosed on the ADB website in December 2020.

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VIII. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

A. Introduction

264. The environmental management plan (EMP) presented here provides the mechanism to implement the mitigation measures and assistance in infrastructure development identified during the environmental assessment. The EMP proposes an effective plan of action that will indicate responsibilities and required measures to minimize the negative environmental & social impacts at various stages of the project. It is the responsibility of the contractor to develop site- specific environmental management plan using this EMP and get approval from PIU with endorsement of ADB before the commencement of physical works on site.

B. Objectives of EMP

265. EMP provides a mechanism to address the adverse environmental impact of a project during its construction, to accelerate project benefits, and to introduce standards of good practice to be adopted for all project works. The objectives of the EMP are to: (i) Define the responsibilities of the project proponents, contractors and construction supervision consultants; (ii) Facilitate the implementation of the mitigation measures identified in the EIA; (iii) Define a monitoring mechanism and identify monitoring parameters; (iv) Provide a procedure for timely action in the face of unanticipated environmental situation; and (v) Identify training requirements at various levels.

C. Responsibilities for the EMP Implementation

266. The construction company will be responsible for EMP implementation (EMP is in Table 41). The company will assign experienced environment, health and safety specialist who will be responsible for ensuring implementation of the safeguard issues specified in the management plan.

267. The PMU, through the architectural design and construction supervision firm, will have the overall responsibility for supervision contractor’s environmental performance, including coordination of public consultation process, GRM and monitoring. Environmental and social safeguards specialist will be assigned responsible for supervising EMP implementation. The tasks of the specialist include: (i) updating the IEE document as necessary if new environmental issues are identified; (ii) reviewing and approval of site-specific EMPs prepared by the contractor; (iii) monitoring EMP implementation; (iv) providing support in capacity building on environmental management issues; (v) facilitate the preparation of safeguards related reports to ADB. PMU will provide periodic and annual monitoring reports to ADB.

D. Site Specific Environmental Plans

268. The contractor companies are responsible for preparation of site-specific EMPs based on the generic EMP, which is annexed to this IEE document. The plans shall be submitted to PIU by contractor ten days before taking possession of any work site.

Table 41: Environmental Management Plan

Project Potential Risks Mitigation Measures Location Indicators Institutional Implement Related Activity/ and Impacts responsibility ation Costs Item Impleme Supervisi Schedule ntation on Pre-construction Phase Planning of Safeguards (i) Review of IEE and Safeguards related aspects TA TA phase Expert the project related issues update of EMP in are properly considered related costs activities are not fully case of changes in during planning and reflected in IEE the list of the project implementation of the and generic selected sites and/or project activities EMP and not other important properly circumstances considered during planning and implementation of the project activities Integration of Bidding (i) Include all For each site Bidding documents contain PIU Project No special safeguards documents are safeguards related all necessary clauses start phase costs related not responsive clauses and integrate related to safeguard issues; expected aspects into to the IEE and EMP into the Prior to the bidding safeguards bidding documents. IEE and EMP are attached contract documents related issues to the bidding documents award and (ii) Include in contract and contractor is performance of provisions heals and performing accordingly; the contractor is safety issues, low containing a specific Health and safety COVID-19 risk provisions including management plan COVID-19 risk (as part of the HSP management plan (as part and ERP) of the HSP and ERP) is in place prior to the contract award Planning of Safeguard (i) Preparation of site- For each site Site-specific EMPs are Contract Architect Two weeks Expert the civil incompliances specific EMPs, taking prepared and presented to or ural before related costs works observed in into account site- PIU for approval at least Design starting the

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different places specific ten days prior to starting of and civil works during the environmental and the civil works; Construct implementation social safeguards ion of the works issues and The works are planned Supervisi requirements; taking into account all on Firm potential impacts on possible site-specific risks, sensitive receptors includes corresponding PIU and corresponding mitigation measures and mitigation measures; are in compliance with site- specific requirements’ (ii) Assess and confirmation of the COVID-19 specific HSP COVID-19 specific and ERP are confirmed HSP and ERP before commencement of submitted by the works contractor before commencement of the works Construction Incompliance (i) Agree design and For each site All necessary permits are Contract Architect Before the No special regulations with construction construction related obtained and works agreed or ural commence costs and obtaining standards and works with all with corresponding Design ment of the expected permits regulations and relevant institutions; institutions; and civil works lack of Construct necessary (ii)Obtain necessary Documents are presented ion permits for the permits from relevant to the PIU before starting of Supervisi construction state institutions if the civil works on Firm related works required. PIU (iii) Particular attention to the construction near the sensitive receptors, high voltage power lines, railways, or other facilities. Planning of Provisions Develop traffic For each site Traffic management Contract Architect Before the Cost for transportation related to traffic management framework is in place or ural commence preparation regulation and framework prior to Design ment of the of the plan vehicle the commencement and civil works movement of the works. Construct

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skipped in the ion designing Supervisi process on Firm

PIU Designing Non-optimized (i) Taking into For each site Optimal workshop design Contract Architect Pre- Design design of the account the for each site or ural contraction/ preparation workshops environmental and Design designing costs leading to social safeguards and stage adverse aspects when Construct environmental planning the design ion impacts at the of workshops; Supervisi construction and on Firm operational (ii) Consider green phases building concept for PIU workshops design;

(iii) Taking into account the existing vegetation cover when selecting the construction area in order to avoid cutting of trees and other plantations as much as possible;

(iv) Consideration of design alternatives to minimize adverse environmental impacts at the construction and operational phases;

(v) Ensure energy efficiency of buildings to reduce resource utilization and emissions during its

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operation Information Unpreparedness Informing For each site Information is disclosed at Contract Architect Prior to the Costs related dissemination of teachers, stakeholders in least 10 days before or ural start of the to students, and advance on the start starting of the civil works Design civil works dissemination local of the civil works and of the communities; Construct information delays in ion learning process Supervisi on Firm

PIU Construction Phase Moving of Noise and (i) Carry out civil works mainly For each site Noise and vibration Contract Architect Throughout Additional vehicles and vibration caused during vocations and the time measurement data or ural constructio expenses construction by vehicles free from learning process to With regard meets the standards Design n phase due to time equipment movement, avoid disruptions of the measure ii – and constraints and construction educational process and to for each site, No special Construct implementati equiplemnt and minimize impacts on the with special complaints received ion Costs related on of other other activties sensitive receptors nearby; attention to related to noise and Supervisi to up to date activities (ii) Avoid construction activities Tsnori, Keda, vibration issues on Firm equipment related to the Impact on the during operation of different Sackhkere, and its civil works construction site sensitive receptors, such as Duisi, Vani Infrastructure PIU maintenance and the kindergartens and other stability is assessed sensitive educational facilities, hospitals With regard receptors etc. measure iv – Monitoring is being nearby (iii) No or limited nighttime and for each site, conducted weekend works and ensure with special Ineficient operation of heavy equipment attention to learning process during the day; Gardabani, and (iv) Avoid movement of vehicles Aspindza, annoyance of and machineries near the Tsnori, Keda, the communities cultural heritage sites and the Telavi, living in the sensitive receptors as much as Sachkhere, surrounding possible, especially in the areas Vani, Kareli, areas where the sensitive receptors Duisi, Oni, are particularly close; Mukhrani (v) Limited number of machineries used at the same Regarding time; the measure (vi) Avoid noise as much as vii – For each

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possible when reloading trucks; site, with (vii) Install acoustic enclosures special and noise isolation around attention to construction areas; Kutaisi, (viii) Setting up local hoardings, Telavi, screens or barriers to shied Abasha, particularly noisy activities Chkhorotsku, (ix) Provide hearing protection Tsalenjikha, devices against noise; Samtredia, (x) Assess the infrastructure Terjola, Vale, stability at the detailed design Bolnisi, stage; Gardabani, (xi) Use a damper to absorb Kareli, Keda, vibration; Duisi, Tsnori, Use of modern machinery and Mukhrani, equipment compliant with sound Oni and vibration standards; (xi) Carry out ctivtiies by taking Regarding into account permissible noise the measure and vibration standards; viii – For (xii) On-site monitoring of noise each site, and vibration level. with special attention to Tsnori, Gardabani, Aspindza, Vani sites.

Regarding the measure (x) – For each site, with special attention to Kutaisi State Universty and Gardabani sites

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EMF exposure (i) Ensure that EMF exposure Khoni site Measurement data Contract Architect Before Costs related caused by level is below the limits available; or ural commence to the electrical recommended by ICNIRP; Design ment of the measurement substation (ii) EMF baseline measurement EMF exposure level and works near the school and workshop near the school and Construct buildings prior to the workshop buidlings ion construction. is below the limits Supervisi recommended by on Firm ICNIRP PIU Air pollution due (i) Conduct 24-hour air quality Regarding Measurement data to increased measurement at least on the CO the measure I is in place and Contract Architect Before Costs related traffic volume, parameter; and Ozone (O3) CO meets the or ural commence to up-to-date movement of measurement (daily max.8 h) measurement permissible Design ment of equipment construction in each site; -special emission standards and works/throu and machinery and (ii) Develop a dust suppression attention to Construct ghout monitoring generation of scheme prior to construction; Gardabani, ion constructio dust from (iii) Use of separate gates for Telavi, Supervisi n phase construction trucks and vehicles to access Aspindza, on Firm activities the ground and avoid them as Keda, much as possible from sensitive Abasha and PIU receptors Oni; and (iv) Use well-developed Ozone for technology and equipment and each site maintain their quality; (v) Ensure that emissions are minimized by cleaning of fuel Regarding injectors; the measure (vi) Refuel vehicles by using of (iii) - for each fuel nozzles and pumps to site, with prevent fugitive emissions of spatial volatile organic compounds; attention to (vii) Avoid dust generating Gardabani, activities on strong windy days; Aspindza,Tsn (viii) Use of water dust ori, Keda suppression during dry weather; sites; Covering vehicles when transporting construction materials; (ix) Limiting the speed of vehicle

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when transporting materials; (x)Remove demolished materials from the site as soon as possible. (xi)Use exhaust ventilation where possible; (xii) Conduct air quality monitoring at construction sites. Generation of (i) Develop and agree on a For each site Waste management Contract Architect Throughout Cost related solid waste and waste management plan for plan is in place; or ural constructio to wastewater each site prior to the Design n phase construction commencement of civil works; Materials and waste (ii) Develop a materials management plan is Construct management management plan prior to in place; ion construction; Supervisi (iii) Minimization of waste Waste disposed on on Firm generation; time; (iv) Waste collection, treatment PIU and disposal in accordance with the accepted standards; (v) Allocation of special area in each site for construction and demolition debris; (vi) Maintain photographs of the area, designed as the disposal site and restore the area construction is complete. (vii) Timely disposal of waste at the nearest official landfill agreed with local municipalities Sending of old metal equipment to scrap collection points. Soil and water (i) Avoid spilling hazardous For each site No soil and water Contract Architect Throughout Cost related contamination materials, such as fuel, oils ad contamination is or ural constructio to due to spill of other substances, and store Regarding observed Design n phase maintenance fuel, oil, toxic them accordance with accepted the measure and chemicals, standards (using a secondary viii- spatial Construct cement and containment system and attention to ion other impermeable base liners). Chiatura and Supervisi construction (ii) Ensure labeling of stored Vani sites, on Firm

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material material; due to its (iii) Placing excavation materials proximity to PIU in approved locations; the river (iv) Maintenance of vehicle and other equipment only in the originally designated areas; (v) Coverage of trucks used for transportation; (vi) Carry out regular technical inspection of vehicles, especially for fuel, oil and battery fluid leakage; (vii) Prevention of rives contamination by construction material; (viii) particular attention should be paid to the Chiatura and Vani site, due to its proximity to the river. Movement of Temporary (i) Develop a traffic regulation For each site Traffic management Contract Architect Throughout Costs related vehicles and traffic plan including vehicles plan including or ural constructio to traffic construction congestions movement scheme and act Regarding vehicle movement Design n phase regulation equipment accordingly; the measure scheme is on place; and (ii) Provide traffic control iiii – for each Construct equipment; site with Damaged are ion (iii) Avoid moving vehicles next special repaired Supervisi to the residential houses as attention to on Firm much as possible and use Tsnori, alternative entrances; Gardabani, PIU Avoid transportation during rush Aspindza hours; Repair of damaged areas, if any. Rehabilitation Using asbestos (i) ACM shall not be used as a For each site Absence of ACM Contract Architect Throughout Costs related /demolishing containing new material for rehabilitation of Old auxiliary or ural constructio to removal works materials (ACM) existing facilities or in buildings with Disposal is done in Design n phase and disposal during construction of new ones; ACM roofing accordance with the and construction (ii) Removal and disposal of internationally Construct works existing asbestos-roofing sheets recognized ion in accordance with the standards Supervisi internationally recognized on Firm standards and state regulations;

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(iii) Removal activities to be PIU scheduled during student’ absence time; (iv)Equip workers with special equipment. Excavation at Excavations at (i) Determining the exact location Spatial Archeological Contract Architect Throughout Construction construction construction of the excavations attention to specimens are not or ural constructio related costs site sites may lead (ii) Estimate the volume of Kutaisi, damaged Design n phase to soil stability, excavation material; Telavi, and health and (iii) Avoid extra land excavation; Abasha, Underground utilities Construct safety issues. (iv) Limited movement of Chkhorotsku, are not damaged ion The process can vehicles used for excavation; Tsalenjikha, Supervisi cause damage (v) Implement erosion protection Samtredia, on Firm to archeological measures; Terjola, Vale, specimens and (vi) Installation of barricades and Bolnisi, underground special signboard; Gardabani, objects. (vii) Excavation in accordance Kareli, Keda, with a specific requirement Duisi, without damaging the Aspindza, underground facilities; Tsnori, (viii) Immediate stop of activities Mukhrani and in case of discovery of Oni site architectural objects and informing the MOESCS.

Temporary Possible (i) Perform the activity carefully For each site Utilities are not Contract Architect Throughout Usually relocation of damage of utility and in a timely manner; and damaged; no or ural constructio municipality utility supplies (ii) Involve all relevant structures. complaints from Design n phase takes supplies local communities Municipal and and at the responsibility ity and Construct completion for other ion of relocations relevant Supervisi constructio institution on Firm n works s PIU Impact on flora (i) Assessment the area and For each site Detailed information Contract Architect Before Experts and fauna avoid environmental sensitive on vegetation cover or ural starting of t related cost; species and areas during construction; and existing wildlife Design works their habitats (ii) Avoid building in a place species provided in and Possible covered by trees or other Site-specific EMPs; Construct Throughout costs related

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vegetation; ion constructio to the (iii) Avoid works in areas No significant impact Supervisi n phase development populated by important wildlife on biodiversity; on Firm of alternative species; designs (iv) Obtaining of special permits in case of necessary cutting or Damage is PIU trees and other vegetation compensated (MOEPA, local authorities); (v) Planting to compensate damage appropriate ratio and in accordance to the regulations; (vi) Develop alternative designs as needed Use of Drinking water (i) Supply workers with bottled Spatial No health-related Contract Architect Prior to the Costs related drinking do not meet the water during the construction attention to issues caused by or ural start of the to the water water requirements of period; Kareli and drinking water Design works/Thro quality technical - Improving drinking water Gardabani Relevant and ughout improvement regulation for quality through: sites Results of chemical state Construct constructio and drinking water Visual inspection of the water and microbiological institution ion n phase monitoring supply system to determine examinations in s Supervisi whether the headwork (water Kareli and on Firm intake point), water pipes and/or Gardabani Public reservoirs are damaged or Schools meets the contaminated and sampling from requirements of various sections and points; technical regulation - Elimination of technical for drinking water damages if detected on pipes and reservoirs; (ii) Microbiological sterilization of water by chlorine, ozone, or ultraviolet treatment in case of headwork’s contamination. Campsite Occupational (i) Develop an emergency For each site Emergency Contract Architect Throughout Health and arrangements health and response plan; response plan is in or ural constructio safety related safety issues (ii) Provide the camp with place Design n costs due to the risks separate toilets (preferable bio and associated with toilets) and provide health and Physical Injuries are Construct physical, safety equipment (uniforms, not observed ion chemical, helmets, goggles, sun-protection Supervisi biological equipment etc.), first aid kits, Teacher and on Firm

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hazards including snake venom drugs students are trained and bee venom antidotes; (ii) Provide trainings to workers Equipment is in PIU on health and safety issues. place Public health (i) Ensure appropriate fencing of For each site The area is properly Contract Architect Throughout Health and safety risks the area fenced or ural constructio safety related caused by (ii) Carry out activities remotely Design n costs improper from the public; and fencing. (iii) Compliance with the COVID- Construct Transmission of 19 guidelines of the Government ion diseases of Georgia and ADB. Supervisi (including on Firm COVID-19) from workers to community and PIU vice versa Restoration Impact on the (i) Develop a rehabilitation and All sites Rehabilitation/restor Contract Architect Throughout Costs related of existing restoration plan for each site to ation plan is in or ural operational to restoration construction environment, repair/restore damage prior to place; Design phase site including utilities leaving the site; and and landscape (ii) Disposal of materials used for Damaged is Construct construction or rehabilitation in restored ion accordance with accepted Supervisi standards and specific plans; Restored area is on Firm (iii) Restore area as equal to the equal to the original original condition condition; PIU (iv) Compensate damage to biodiversity if any Damage on biodiversity is compensated.

Operational Phase

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Equip and Noise and (i) Designing walls, floors, doors For each site Noise and Contract Administr Throughout Costs related operation of vibration in the and windows providing sound vibration or ation operational to up-to-date the workplace transmission loss and cover Regarding the measurement phase equipment workshops caused by ceilings and walls with sound- measure I, ii, iii - data meet the Administr Other mechanical absorbing materials in Special attention established ation unit relevant impact, air or woodworking workshops; to standards; authoritie fluid flow and (ii) Remove noise sources from Abasha, Terjola, s the vibrating teachers and students by Kharagauli, Equipment does surfaces of a installing sound-proof barriers Tsnori and Oni not exceed the machine and providing buffer zones in sites maximum noise woodworking workshops; permissible (iii) Installation of heavy bases limits and are for noisy equipment and isolate equipped them from other equipment in Regarding the accordingly woodworking workshops; measure iv – for (iv) Select equipment that does each site with not exceed the permissible noise special attention and vibration permissible limits to Gardabani, and equip them with silencers Kutaisi State and dampers. Special attention University, Duisi, to the sites with old Keda sites infrastructure; (v) Reduce outdoor noise in Regarding the buildings by using sound- measure v- absorbing materials such as particular soundproofing panels or drywalls attention to be or reinforce frames through open payed to cell foam and by installing Mukhrani and doubled glass windows; Kutaisi College. (vi) Operation of workshops during the day; Regarding the (vii) Noise and vibration level activity v – for monitoring. each site, wit spatial attention to Mukhrani and Kutaisi College Hazardous (i) Collect waste in appropriate For each site Toxic and Administr Administr Throughout Operational waste containers to prevent possible hazardous ation ation operational costs generation and spillage and emanation; Regarding the waste treated in phase air pollution as (ii) Disposal of waste generated measures iv – accordance with Other

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potential at various workshops in with spatial the relevant impacts caused according with regulations; attention to corresponding authoritie by operation of (iii) Provide equipment with (iv) Vale, Duisi, standards and s different appropriate filters and other Chkhorotsku, regulations workshops; necessary technical means; Kareli, Keda, generation of (iv) Installation of appropriate Sachkhere, sawdust; health exhaust system equipped with Samtredia and problems special fire protection means in Khoni sites. culinary art workshops. Ozone generators and UV treatments Regarding the can be also used, but only on measures v,vi – the basis of a preliminary special attention analysis of its expediency, as it to Abasha, needs regular maintenance Terjola, compensated by reduced Kharagauli, frequency of duct cleaning and Tsnori and Oni risk of fire; sites (v) Installation of exhausting ventilation system for each student work table in the wooden Regarding the workshop to prevent toxic fumes measures vi – from solvents and paints. special attention (vi) Installation of wood dust to Abasha, collector and regular cleaning Terjola, the machinery in each wood- Kharagauli, processing workshop; Tsnori and Oni, (vii) Arrangement utility sink for Vale, Duisi, cleaning the special equipment Chkhorotsku, in wood processing workshop Kareli, Keda, and culinary art workshops; Sachkhere, (vii) Work out the waste disposal Samtredia and plan for pharmaceutical Khoni sites. workshop. Regarding the measure vii – spatial attention to the Kutaisi State University site. Drinking water (i) Periodic monitoring of water For each site Drinking water Administr Administr Throughout Costs related

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quality may not quality in each project site; quality meets ation ation operational to monitoring meet the (ii) Periodic monitoring of nitrate Special attention the requirement phase requirements of level where according to the to Kareli and of technical Relevant technical preliminary assessment, the Gardabani Public regulation for state regulation on nitrate content was close to the Schools; drinking water authoritie drinking water maximum permissible s concentration; Regarding the (iii) Periodic monitoring of water measure ii- quality with portable test kits spatial attention measuring the free chlorine in to Tsnori site the water. Regarding the measure iii – for each site Health and (i) Equip workshop ventilation For each site Health and Administr Throughout Costs related safety issues for and related system with UV air safety issue s Administr ation operational to monitoring trainers and filters to prevent the risk of With regard to are fully ation phase students spreading infections; the measure ii – considered in Relevant working in (ii) Prevent taking of high risk for each site with each project site state specific containing material (flammable, spatial attention authoritie workshops toxic, explosive and high voltage to Kutaisi, Vale, Emergency s equipment) in workshops, Duisi, Aspindza, response plan especially in electronics and Chiatura, developed for robotics workshops; Chkhorotsku, each site (iii) Allocate separate space for Kareli, servers and UPS devices, Kharagauli, Teachers and isolated from students and Tsnori, students are teachers in ICT workshops; Tsalenjikha, Vani; trained in health (iv) Develop an emergency plan and safety for each workshop place; Regarding the issues (v) Equip students and trainers measure iii – for with appropriate personal each site with protective equipment, such as spatial attention safety goggles, hearing to Telavi, protectors, respirators/masks Abasha, Bolnisi, etc.; Gardabani, Keda, (vi) Wearing appropriate Mukhrani, Oni, clothing; Sachkhere, Use of equipment, machinery Samtredia, and tools in safe conditions; Terjola, Khoni

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(vii) Equip workshops with first aid kits; (viii) Install emergency lightening, fire detecting and alarm systems and provide firefighting equipment; (ix) Use of high standard electrical installations/equipment; (x) Install power isolators; Install sockets, plugs and cables in safe places; (xi) Train students and teachers in machinery and equipment protection; (xii) Train students and teachers on health and safety issues and inform them how to act in case of accidents.

ACM = asbestos containing material, ADB = Asian Development Bank, IEE = initial environmental examination, EMP = environmental management plan, PIU = project implementation unit, TA = technical assistance. Source: Technical Assistance-9790 GEO.

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E. Health & Safety Management Framework

269. The Health and Safety Management Framework provides a basis for Contractor to create a detailed plan to reduce and remove any harm due to construction activities to local management, construction staff and local residents’ health and ensure human safety of the management and construction staff at the project site. i.Occupational Health and Safety Hazards

270. Hazards at the construction site can occur due to: (i) Over-exertion; (ii) Slips and fall; (iii) Working on heights; (iv) Exposure to heat (hot work); (v) Struck by objects; (vi) Moving machinery; (vii) Dust; (viii) Confined spaces and excavations; and (ix) Other site hazards etc.

i.Safety Planning

271. The potential safety requirements that will be taken care of during construction are as follows: (i) Everything needs to be properly ordered; (ii) Confined space entry procedures; (iii) Compress gas cylinder safety; (iv) Leakage and spillage control; (v) Compliance with safety belt requirements; (vi) Provision of protection rail; (vii) Provision of safety signs on construction site; (viii) Inspection at open bulk excavation area; (ix) Measure for operation of electrical and mechanical equipment; (x) Forecasting and precautions against natural disaster; (xi) Providing driving/operating safety requirements; (xii) Installation of traffic signs on construction roads; (xiii) Safety guard during transportation of dangerous products; (xiv) Providing slip and fall trainings; (xv) Use of personal protective equipment (PPE) provides additional protection to workers exposed to workplace hazards; (xvi) Controlled measures for confined spaces; and (xvii) Disciplinary sanctions against offenders.

a. Health Plan

272. The Health, Safety and Environment (HSE) Section of the contractor will be responsible for publicizing and implementing labor protection, vocational health and sanitary epidemic prevention policies and standards during construction, offering health training to the staff and applying preventive measures. Some of the clauses that will be duly taken care while preparing a health plan will include the following:

132 Annex 1

(i) Measures to avoid diseases on site; (ii) Establishment of the construction staff’s vocational health file; and (iii) Establishment of the medical treatment room and configuring professional medical treatment and nursing staff.

a. Responsibility

273. Contractor will establish HSE Section as a standing organization for health and safety management during the construction phase. The contractor construction units will be responsible for establishing the management system, implementation of management measures and ensuring realization of its objectives. While during the operations and maintenance phase, PIU and contractor will be held responsible for all HSE issues. 274. The details of organizational structure, roles and responsibilities will be determined in detailed plan to be prepared by the contractor.

F. Environmental Monitoring

275. In-house monitoring during construction phase will be conducted by construction companies, which will make sure that the construction activities are being carried out as specified in site-specific EMPs to be prepared by them, based on the IEE and generic EMP and submitted to the PIU 10 days before taking possession of any work site. Contractor will also train the staff in environmental and health and safety issues. The PIU, through the architectural design and construction supervision firm’s environmental, health and safety specialist will have the overall responsibility for supervision the monitoring process. Environmental monitoring plan is Annex 3.

G. Reporting

276. PIU, through the architectural design and construction supervision firm will ensure that semi-annual environmental monitoring reports are prepared and submit to ADB, which will include information on environmental and social issues, where the information will be reflected on the progress made in EMPs implementation, problems and taken measures. PIU’s monitoring, evaluation and reporting specialist will be responsible for coordination the reporting process together with the team.

H. Environmental Management Costs

277. The costs for environmental management of the project shall mainly consist of the (i) monitoring of works by the EMS who will be employed by site contractor (ii) baseline parametric measurement on air, vibration, EMF and regular parametric measurements of noise, dust, water, vibration and emission. Implementation of all the mitigation measures shall be part of the contractual works and obligation of the contractor.

278. The cost for the environmental management for construction period is tentatively estimated for one site in the Table below.

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Table 42: Environmental Management Cost

Unit Item Remarks Cost Total Cost ($) Updating IEE for the detailed - - design To be conducted by the contractor for air emissions (24-hour air quality measurements at least on CO parameter in Gardabani, Telavi, To be defined Aspindza, Keda, Abasha and Oni sites; Ozone Baseline Parametric To be (O3) measurement (daily max. 8 h) in each site; Measurements defined Prior to the on drinking water in Gardabani and Kareli sites, construction vibration at least in Gardabani and Kutaisi State University and other sites if necessary and EMF exposure level in Khoni site Monthly for To be conducted by the contractor at monthly Monthly Parametric the entire bases as well as during the peak operation of 400 Measurements construction construction equipment and machinery on noise, period dust, vibration Testing to be conducted by the contractor on Monthly for monitoring of water quality with portable test kits the entire Monthly Water Quality Testing 200 measuring the free chlorine in the water; nitrate construction level in Tsnori site period

Monthly for The costs will be included in the contract signed Environmental Management the entire 2,500 between PIU and contractor and no additional Specialist construction costs will occur period Monthly for Environmental specialist the entire The costs will be included in the contract signed 1,500 (Contractor) construction between PIU and contractor period International Environmental To be To be defined The costs will be included in the contract Consultant (Contractor) defined E&HS Training To be Training to be conducted for all persons involved 1500 defined in construction process on monthly based Construction of dust and noise To be installed where the sensitive receptors are 4000 To be defined barriers close to the site Anti-COVID-19 measures Monthly for (hiring of doctor and nurse for the entire the regular check-ups and construction establishing designated Training to be conducted for each person 400 period quarantine area, purchasing of involved in construction (depending on necessary PPE, sanitizers, COVID-19 handwashing facilities, face situation) masks, etc.) Miscellaneous COVID-19 = coronavirus disease; EA = executing agency; E&HS = environment, health, and safety; PPE = personal protective equipment; PIU = project implementation unit. Source: Technical Assistance-9790 GEO.

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IX. PROJECT GRIEVANCE REDRESS MECHANISM

A. Introduction

279. A Grievance Redress Mechanism (GRM) constitutes a formalized system of accepting, assessing, and resolving/ addressing community feedback or complaints. It provides predictable, transparent, and credible processes to all parties, resulting in outcomes that are relatively low cost, fair, and effective. GRMs build on trust as an integral component and facilitate corrective action and pre-emptive engagement. They also set out a timeframe in the resolution of complaints. The GRM should be established and operated in compliance with Georgian legislation and ADB’s Safeguard Policy Statement (SPS) 2009 requirements. 280. ADB’s SPS requires the borrower/client to establish a GRM to receive and facilitate the resolution of complaints related to the project. As per SPS 2009, the borrower/client is required to establish a mechanism to receive and facilitate the resolution of affected persons’ concerns and grievances related to project impacts, paying particular attention to the impacts on vulnerable groups. The GRM should be scaled to the risks and adverse impacts of the project. It should address affected persons’ concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to the affected persons at no costs and without retribution. The mechanism should not impede access to the country’s judicial or administrative remedies. The borrower/client is required to inform the project affected persons about the GRM. 281. At the national level, the Administrative Code of Georgia is the primary legislation defining the rules and procedures for grievance review and resolution. According to this law, the administrative body receiving officially lodged claims is obliged to review the claims, engage the claimant in the grievance review and resolution process, and make the final decision in the resolution of the claim/ complaint. Clause 181 defines the content, and the grievance submission forms. In particular, the grievance package should include:

i. Name of the administrative body to whom the complaints are addressed ii. Name, address, and contact details of the claimant iii. Name of the administrative body, who’s decisions or administrative acts are the subject of complain iv. Name of the administrative act or decision, which is subject of complain v. Content of the claim vi. The context and facts, based on which the complaint is substantiated; and vii. List of attachments.

282. Clauses 194 and 198 define the rules and procedures ensuring participation of the claimants in the grievance review process. According to the clause 202, the decision issued by the Administrative Body in relation with the reviewed claim has a status of individual administrative legal act. The standard period given for the issuance of the decision in relation with the grievance is 1 month.

B. GRM, Grievance Redress Committee and Grievance Focal Persons

283. GRM consists of project-specific systems established at the municipal level and regular system established at the PIU. The Grievance Redress Committee (GRCE) will be established at the municipal level as a project-specific instrument, functional for the whole period of the

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project implementation. The Grievance Redress Commission (GRCN) is formed as an informal structure within the PIU to ensure grievance review, resolution, and record. 284. GRCE will be formed to administer project-specific grievances exercising grievance redress mechanism and handle grievances at Stage 1 of the GRM. GRCE is the first-instance body to be established at the community level in each affected municipality (village/community authority) and includes representatives of Municipal LAR Teams and local communities. The PIU through safeguards specialist of ADCSF shall coordinate the GRCE formation. He/she will then be responsible for the coordination of GRC activities and organizing meetings (Convener). In addition, GRCE shall comprise village Rtsmunebuli or his/her representative, representatives of APs, women APs and appropriate local NGOs to allow voices of the affected communities to be heard and ensure a participatory decision-making process. (i) GRCN is formed by the order of the Head of PIU as a permanently functional structure, engaging personnel of the Implementing Agency, in this case the MOESCS, from all departments having regard to environmental safeguard and LAR issues and complaint resolution. MOESCS representative, PIU top management representative, PIU monitoring, evaluation and reporting specialist, lawyer and engineer, PR and communication specialist of social marketing firm, which will be contracted by PIU, and other relevant persons. The GRCN is involved at the Stage 2 of grievance resolution process. The Order shall also state that if necessary, representatives of local authorities, NGOs, auditors, APs and any other persons or entities can be included in the Commission as its members.

(ii) GRCEs will be established at the community level by PIU order and with following composition: Safeguards specialist of ADCSF, Gamgebeli – concerned Gamgeoba (village level), representatives of civil works contractor, NGO representative, APs representative, acting as Grievance Focal Person (GFPs).

285. Safeguards specialist of ADCSF is coordinating the work of the Committee and at the same time s/he is nominated as a contact person for collecting the grievances and handling grievance log. The local authorities at the municipal level, Contractor, as well as APs (through informal meetings) are informed about the contact person and his contact details are available in offices of all mentioned stakeholders.

286. The ADCSF will assist the project affected communities/villages identify local representatives to act as GFPs. The GFPs will be responsible for i) acting as community representatives in formal meetings between the project team and the local community s/he represents; ii) communicating the community members’ grievances and concerns to the contractor during project implementation.

287. A pre-mobilization public consultation meeting will be convened by the PIU and will be attended by the GFPs, representatives of the contractor(s) and other interested parties (e.g. district level representatives, non-governmental organizations, etc. The objectives of the meeting will be as follows:

i. Introduction of key personnel of each stakeholder including roles and responsibilities ii. Presentation of project information of immediate concern to the communities by the contractor (timing and location of specific construction activities, design issues, access constraints etc.) This will include a summary of the EMP - its purpose and implementation arrangements

136 Annex 1

iii. Establishment and clarification of the GRM to be implemented during project implementation including proactive public relations activities proposed by the project team, ensures that communities are continually advised of project progress and associated constraints throughout project implementation period; and iv. Elicit and address the immediate concerns of the community based on information provided above.

288. In the operational stage complaints will be resolved at GRCE level.

C. Project Grievance Redressed Process

289. During the actual operationalization of the GRM, the process and communication flows will be centered with GRM Coordinator. ADCSF will serve as GRM coordinator. The GRM Coordinator will take initiative to be observant of any issue and will try to obtain information, which will be used at the subsequent GRM process stages. Under normal processing through the GRM, complaints undergo four major procedural stages as follows:

Stage I: Registration and Initial Assessment

290. This is the entry point of complaint wherein the complainant is allowed to tell his side of the issue and to be assured that his grievance will be seriously and expeditiously dealt with. The following are the tasks in this stage: (i) Receive Grievance: This task will entail listening intently from the source of the complaint, filling out the Complaint Form and registering the complaint in a GRM Registry Book, and assigning a GRM Reference Number. The complainant or representative shall affix a signature and provide contact particulars on the Complaint Form. Important information shall be entered in the Complaint Form, which can be supplemented by additional documents.

(ii) Obtain Comprehensive Information: The GRM Coordinator will mobilize some staff to obtain as much information as possible from the location where the complaint originated, the impact area and the outlying areas. Field information will be gathered using necessary survey methodologies, equipment, and devices. Interviews shall be conducted directly from the field to have the actual appreciation of the nature of the complaint and to obtain other versions of the issue. It would be necessary to talk and discuss with as many people as possible who have direct and indirect knowledge of the problem. Photographs and videos shall be obtained, which can be used later in the analysis of the problem. Secondary backup information shall also be acquired to determine background information and cross-reference it with other sources of information.

(iii) Screen and Assess: After gathering all the available and obtainable information, the GRM Coordinator with the support of the staff shall analyze the complaint and determine the admissible information. The team will render an opinion on whether the complaint is project related or not and provide justifications for such opinion. The findings shall be communicated to the complainant upon which, in case of disagreement, supplementary information may have to be provided by the complainant.

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Stage II: Initial Resolution

291. Based on the opinions of the screening and upon presentation of additional documentary evidence by the complainant, GRM Coordinator will direct the complaint to one of the following options: (i) Refer to appropriate authorities: If the issue is not relevant to the project, the GRM Coordinator will refer the issue to appropriate competent office and explain to the complainant the reasons. S/he will advise the complainant on what to do and provide contact particulars to that appropriate office if available. Primarily, these can be the MOEPA, local authorities or the local court in district or region that has jurisdiction on the issue. Also, if available and possible s/he can refer the complainant to some people who can really be of good help (e.g. NGOs). After these steps, the matter will be considered closed and Resolution Acceptance Form will be issued for the acceptance and signature of the complainant. Relevant information regarding the resolved complaint shall be gathered and a cross entry shall be entered in the GRM Registry Book.

(ii) Resolve within the project: If the complaint is found to be project related, the Contractor/s will be given directive to resolve the matter. It would be necessary to have a meeting with the Contractor/s’ project manager regarding the issue. The meeting will entail determination of the most preferred options, which will be part of the next stage of GRM process.

(iii) Reject the complaint with clear explanation: When in the opinion of the committee complaint is not project related, it is rejected and such decision will be communicated to the complainant, after which the matter will be considered closed and all relevant information shall form part of the archived information.

Stage III: Selection of Approach and Strategy

292. At this stage, the complaint will be accepted and agreed the proper approach and strategy for its resolution. Depending on the gravity of the situation and of the complaint the GRM has the following options: (i) Contractor/s recommend solution: In this approach, as in most cases, the contractor shall decide on the technical solution to the issue and implement the measure/s. This seems straightforward especially if this is within the scope and obligations of the contract. Some contractual issues may arise pertaining to cost and payment considerations, but this can be decided by the contractor. After due decision is made on the division of scope and responsibility, the GRM Coordinator will oversee the implementation of the resolution or measures and report to the PIU. The progress of the execution of works is documented with periodic reporting to PIU. The complainant is also apprised on the progress of the work for better attainment of results and for improved effectiveness of the measures.

(ii) Complainant joint solution: In some cases, the cooperation and collaborative effort of the complainant is necessary to provide some avenues to facilitate the devising of a solution. It is a good strategy to involve the complainant in the problem-solving process as it can generate cooperation.

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(iii) Third party arbitration: In complicated matters where the complainant is reluctant to work directly with the contractor, the complaint can be elevated for arbitration. This may not be an easy approach as the project will have to organize and set up an arbitrating party, perceived as impartial, to execute the process. Nevertheless, this can still be pursued if both the contractor and the complainant agree to use this approach.

(iv) Local conflict resolution: These may be through the local courts, council of elders in the village, through the appointed head of local municipality, etc. Issues may be discussed through these avenues, and with the participation of the contractor, consensus can be arrived at for the benefit of those affected directly and indirectly.

Stage IV: Execution of Measures and Documentation

293. At this stage, the agreed solution or measures are implemented by the contractor under the supervision of the ADCSF and tracked by the GRM Coordinator for documentary purposes. i. Execute solution: The execution of solution will entail engagement of the contractor and his staff. Designs or schemes will be agreed upon and are to be checked by the staff as part of their facilitation tasks. Equipment and materials will be employed, and work will be performed by the contractor and supervised by the ADCSF.

ii. Document the progress: The GRM Coordinator will undertake full documentation of the work, and shall also include designs and schemes, costing, photographs of the work (before, during and after), which will form part of the progress reporting and documentation archive of the GRM.

294. At this stage, the complainant may either be satisfied or not satisfied, and the issue persists. The following pathways ensue in each of the cases: If the issue is deemed to be resolved satisfactorily, the grievance is considered ‘Resolved’ and two more tasks are to be accomplished: i. Completing the documentation: The GRM Coordinator will complete all documentation and ask the complainant to sign the Resolution Acceptance Form that s/he was satisfied with the measures implemented.

ii. Recording acceptance: At the end, the GRM Coordinator will put an entry in the GRM Registry Book that the grievance is resolved.

295. In case the issue is not resolved, the complaint and grievance will follow another pathway entailing the following sub-tasks and then revert to Stage III to repeat the process: i. Review the complaint: The GRM Coordinator will initiate a review and if necessary, request the group for larger review. The purpose of this is to determine other underlying issues that led to the non-resolution of the complaint.

ii. Assign appropriate staff: It may be necessary to appoint appropriate staff to assist in the process or even obtain outside assistance from some governmental offices. The GRM Coordinator will seek out other staff who can contribute to the resolution of the issue.

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iii. Formulate approach/ strategy options: The GRM should also determine if the approach itself was the cause of the non-resolution of the issue. In this instance, the contractor may need to revisit the initial approach and further refine it or even change it entirely if required. During this internal sub-process, the GRM Coordinator should be proactive in documenting every step, which will form part of the documentation and progress monitoring of the GRM process.

296. The timeline for resolution of complaint for each level (GRCE, GRCN) will be not more than 2 weeks for each level and not more than 1 month for the whole cycle (excluding the specific cases). 297. A complainant may also register/file a case in a court of law. GRM does not impede access to the country’s judicial or administrative remedies and a complainant can access the courts at any point in time. However, all efforts will be made to settle the issues raised at the GRCE/GRCN level. All complaints and resolutions will be properly documented by the PIU and made available for review, monitoring and evaluation purposes. In addition, the complainant can appeal the decision and bring the case to the ADB Accountability Mechanism. The project level GRM does not in any way, impede the access of the complainants to the ADB Accountability Mechanism (AM) or the country’s judicial or administrative remedies. Should the complainant wish to register a complaint with the ADB AM, the focal person should provide the complainants the ADB AM contact information68.

X. CONCLUSIONS AND RECOMMENDATIONS

A. Conclusion

298. Implementation of the proposed project activities is critically important for the VET sector development in the country. Field observation results and secondary sources of information have been used for the assessment of environmental impacts of the project activities. Due to the COVID-19 pandemic, a mixed approach was used for the consultation meetings, part of them were conducted online and some of them through on-site meetings.

299. The IEE report highlights potential environmental impacts associated with the development of the project selected sites and recommends mitigation measures for each project implementation phase. All environmental impacts need to be mitigated according to the EMP and intuitional arrangements described in the report.

300. The project has been assigned environmental category B, in accordance with the ADB Safeguard Policy Statement. IEE report with the EMP is considered as sufficient environmental assessment of the project and a full EIA is not required.

301. The conducted study reveals that the expected environmental impacts have the site- specific and temporary character and are mainly confined with construction activities and some of them with operational phase, which are predictable and manageable. Possible negative

68 https://www.adb.org/site/accountability-mechanism/main

140 Annex 1

impacts can be minimized or avoided by implementation of mitigation measures, which will be the contractor’s responsibility during the construction phase thorough the development and implementation of site-specific EMPs, which will be prepared by the contractors and approved by PIU with endorsement of ADB team. Site-specific EMPs will be submitted and approved at least ten days prior to the start of the civil works. Safeguard measures must be clearly defined in the bidding and contract documents and supervised by environmental consultants.

B. Recommendations

(i) Safeguards related clauses, IEE and EMP should be integrated into the bidding documents; (ii) Heals and safety issues, containing a specific COVID-19 risk management plan (as part of HSP and ERP) should be Included in contract provisions; (iii) Contractor should commence the activities considering all safeguard related clauses which will be part of bidding document; (iv) Site-specific EMPs, taking into account environmental and social safeguards issues and potential impacts on sensitive receptors and corespondig mitigation measures should be developed by contractor prior to the start of the works; (v) Other specific plans, such as, emergency response plan, waste management plan, material management plan, traffic regulation plan, rehabilitation and restoration plan etc. should be developed by contractors before comensements of the civil works; (vi) Possible impact on flora and fauna species and their habitats should be assessed prior to the construction in each project site; (vii) Baseline measurements should be conducted prior to the construction according to the EMP; (viii) Monthly parameters measurements and monitoring should be conducted by the contractor; (ix) IEE must be revewed and current EMP shall be updated in case of changes in the list of the project selected sites and/or other important circumstances after having the final plans, to include any other potential environmental impact and mitigation measure if such will be applicable by changing the scope of the work; EMPs may need to be revised again during the construction phase to reflect all possible impact that was not anticipated during the pre-construction phase.

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ANNEX 1: ATTENDANCE FORMS OF THE PARTICIPANTS

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Annex 1 143

144 Annex 1

Annex 1 145

146 Annex 1

Annex 2 147

ANNEX 2. DESIGNED LAYOUTS OF THE SKILLS HUBS

Figure 1 and 2: Workshops for ICT and electronic engineering (College Iberia)

Source: Technical Assistance-9790 GEO.

148 Annex 2

Figure 3 and 4: Workshops for Medical and Pharmaceutical Production (Kutaisi State University)

Source: Technical Assistance-9790 GEO.

Annex 2 149

Figure 5-6: Workshops for ICT, Services and Water Engineering (College Prestige)

Source: Technical Assistance-9790 GEO.

150 Annex 2

Figure 7: Workshops for Fashion and Design (Telavi State University)

Source: Technical Assistance-9790 GEO.

Annex 3 151

ANNEX 3: ENVIRONMENTAL MONITORING PLAN

Monitoring Monitoring Details Timing/ Institutional Responsibility Costs Aspect Frequency Implementation Supervision Construction Phase Noise and Ensure that noise and Throughout Contractor Architectural Staff related vibration vibration level are in construction/ Design and cost / compliance with state weekly Construction Monitoring standards and instrumental Supervision costs regulations measurement Firm PIU Ambient air Ensure that air quality on Throughout Contractor Architectural Staff related (measuring CO, the site is in compliance construction Design and cost/ NO, SO2, PM- with state standards and Construction Monitoring 10) regulations Supervision costs Firm

PIU Water Improve the drinking Throughout Contractor Architectural Staff related water quality and ensure construction Design and cost that it meets the Relevant state Construction Rehabilitatio requirements of technical institutions Supervision n costs/ regulations, supply of Firm Monitoring workers with bottled costs water PIU Construction Ensure that construction Throughout Contractor Architectural Staff related Waste, soil and waste is disposed to the construction Design and cost/ water approved disposal sites Relevant state Construction Monitoring contamination and metal scraps are institutions Supervision costs disposed in scrap Firm collection points; hazardous waste is PIU stored and disposed according to the international and national standards and regulations; rivers are not contaminated Movement of Ensure that the works are Throughout Contractor Architectural Staff related vehicles and implemented according construction Design and cost/ construction to the traffic regulation Relevant state Construction Monitoring equipment plan and vehicles institutions Supervision costs movement scheme; no Firm dust and traffic are generated caused by PIU transpiration and damaged areas are reappeared ACM Ensure that ACM is Throughout Contractor Architectural Staff related removed and disposed in construction Design and cost accordance to Construction international accepted Supervision standards Firm

PIU

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Excavation at Ensure that excavation is Throughout Contractor Architectural Staff related construction conducted without construction Design and costs/monitor site damaging of Construction ing costs underground facilities, Supervision erosion protection Firm measures are implemented, and PIU barriers are installed Temporary Ensure that the activities Throughout Contractor Architectural Staff related relocation of are performed carefully construction Design and costs/monitor utility supplies without damaging the Construction ing costs utility supplies Supervision Firm

PIU Flora and Ensure that detailed data Throughout Contractor Architectural Staff related Fauna Species on species is provided in construction Design and costs/monitor and their Site-specific EMPs, the Construction ing costs habitat works are conducted with Supervision minimum impacts on Firm biodiversity; all permits are in place; planting is PIU conducted in appropriate ratio to compensate MOEPA, local damage and in municipality accordance to the regulations Occupational Ensure that the activities Throughout Contractor Architectural Staff related health and are conducted according construction Design and costs safety to the plan; campsite is Construction provided with toilets and Supervision the camp is equipped Firm with all necessary health and safety related PIU equipment, including first aid kits, snake venom drugs and bee venom antidotes; Covi-19 related measures are fully considered. Restoration of Ensure that damages are Throughout Contractor Architectural Staff related construction repaired prior to leaving construction Design and costs site the area Construction Supervision Firm

PIU Operational Phase Noise and Ensure that noise and Throughout Administration Relevant state Operational vibration vibration level are in operational monitoring costs compliance with state phase institutions Monitoring standards and costs regulations/instrumental measurement

Annex 3 153

Air pollution Ensure that emission Throughout Administration Relevant state Operational level are in compliance operational monitoring costs with state standards and phase institutions Monitoring regulations costs Toxic and Ensure that waste Throughout Administration Relevant state Operational hazardous disposal is conducted operational monitoring costs waste materials according to the phase institutions Monitoring corresponding standards costs by minimizing air and water pollution and in an environmentally friendly way Exhaust system Ensure that proper Throughout Administration Relevant state Operational operation ventilation systems are operational monitoring costs installed, which are in phase institutions Monitoring compliance to the costs corresponding standards; machineries are equipped with appropriate filters and other necessary technical means Drinking water Ensure that drinking Throughout Administration Relevant state Monitoring water quality meets the operational institutions costs requirements of technical phase regulation on drinking water Occupational Ensure that all health and Throughout Administration Relevant state Monitoring Health and safety issues, including operational institutions costs Safety issues Covid-19 measures are phase including properly considered and Covid-19 documented measures

Source: Technical Assistance-9790 GEO.

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ANNEX 4: RAPID ENVIRONMENTAL ASSESSMENT (REA) CHECKLIST

Country/Project Georgia, Modern Skills for Better Jobs Sector Development Program Title:

SCREENING QUESTIONS YES NO REMARKS A. Project Siting Is the project area adjacent to or within any of the following environmentally sensitive areas? • Cultural heritage Site X • Legally Protected Area X • Wetland X • Mangrove X • Estuarine X • Special area for protecting biodiversity X B. Potential Environmental Impacts Will the project cause… • Impairment of historical/cultural areas X • Disturbance to precious ecology X Considered a risk • Alteration of surface water hydrology or waterways resulting in X increased sediment in streams affected by increased soil erosion at construction site? • Deterioration of surface water quality due to silt runoff and sanitary X Expected in urban waste from worker-based camps and chemicals used in construction? areas • Increased air pollution due to project construction and operation? X Considered a risk • Noise and vibration due to project construction or operation? X Considered a risk • Involuntary resettlement of people? (Physical displacement and/or X economic displacement) • Disproportionate impacts on the poor, women and children, indigenous X peoples or other vulnerable groups? • Poor sanitation and solid waste disposal in construction camps and X Less expected work sites and possible transmission of communicable diseases from workers to local populations? • Creation of temporary breeding habits X • Social conflicts if workers from other regions or countries are hired? X Less of a risk • Large population influx during project construction and operation that X causes increased burden on social infrastructure and services (such as water supply and sanitation system)? • Risks of vulnerabilities related to occupational health and safety due to X physical, chemical, biological and radiological hazards during project construction and operation? • Risks to community health and safety due to the transport, storage and X Considered a risk use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation? • Community safety risks due to both accidental and natural causes, X Considered a risk especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning? • Generation of solid waste and/or hazardous waste? X Considered a risk • Use of chemicals X Considered a risk • Generation of wastewater during construction or operation? X Considered a risk

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ANNEX 5: COVID-19 MANAGEMENT PLAN

Objective The purpose of the COVID-19 Management Plan is to prevent / limit/ control the spread of COVID-19 at Site that can hamper the progress of proposed Project. The specific objectives are as follows:

(i) To enhance understanding of the evolving COVID-19; (ii) To share knowledge on COVID-19 and preparedness measures being implemented at Site; (iii) To generate recommendations for adjusting COVID-19 containment and response measures; and (iv) Outline the measures to be taken at Site. The advised measures will help all the stakeholders to plan their work continuity during the COVID-19 pandemic.

About Corona Virus (COVID-19) The COVID-19 belongs to a family of viruses known as the Coronaviruses, which can cause illnesses ranging from the common cold to more severe diseases, such as the Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS).

Symptoms The symptoms of COVID-19 are similar to regular pneumonia. Typical symptoms include: (i) Fever (ii) Cough (iii) Difficulty in breathing (iv) Pneumonia (v) Runny nose (vi) Sore throat; and (vii) Feeling of being unwell.

Mode of Transmission The primary mode of transmission is infected person to person transmission. Infected people can spread COVID-19 through their respiratory secretions via droplets produced when an infected person coughs or sneezes, similar to how influenza and other respiratory pathogens spread. The spread from person to person is most likely to occur during close contact i.e. 6 feet or less. The disease may be spread through: (i) Air by coughing and sneezing (ii) Close personal contact, such as touching or shaking hands (iii) Touching an object or surface with a virus on it; and (iv) Touching your mouth nose or eyes before washing your hands.

General Standardized Precautionary Measures Following measures/recommendations are suggested as a general guidance to be followed for the protection of potential impacts of COVID-19:

Since, there is no vaccine available to protect against human Coronavirus infections, transmission can be prevented through adopting the following measures:

(i) Cover your mouth while coughing or sneezing

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(ii) Avoid close contact with people who are sick (iii) Avoid the use of hard soap (iv) Wash your hands often with liquid soap and water for at least 20 seconds (v) All the employees should ensure sanitization of hands at regular intervals (vi) Avoid touching your eyes, nose, and mouth with unwashed hands (vii) If you are concerned about your symptoms you should see your health care provider at site or in office (viii) Use of Personal Protective Equipment (PPE) must be ensured according to risk (a surgical or N95 mask) (ix) Do not spit; wrap your oral and nasal secretion in a tissue and throw it in a covered dustbin (x) Balance your nutrition and exercise moderately (xi) Sterilize or disinfect medical devices at Site dispensaries; and (xii) Do not touch, buy or eat wild animals (game). Try to avoid visiting markets that sell such animals.

Project Site Specific Precautionary Measures Measures for protecting staff and labour from exposure to, and infection with, the COVID-19 depend on the type of work being performed and exposure risk, including potential for interaction with infectious people and contamination of the work environment. Regardless of specific exposure risks, following are the main actions that must be taken at Site to combat the COVID-19:

Employer Employer should issue a notification containing the precautionary measures in the light of government guidelines to be implemented at Site. Upon receiving the Employer notification all the mentioned precautionary measures are to be communicated to the Engineer staff for compliance. Employer’s technical staff must also comply with the prevention guidelines and ensure that the Contractor also does so to control the spread of COVID-19 at Site.

Engineer/ Consultant The Engineer/ Consultant’s top management will issue orders to project personnel to comply with government guidelines containing the precautionary measures to control the spread of COVID-19 for the staff working at Site. Engineer’s staff at Site will fully comply with the orders. Considering the severity of the prevailing virus the Engineer should devise SOP containing precautionary action against the potential risk of COVID-19. In addition to the above, the Engineer/ Consultant will ensure the following precautionary measures at Site. (i) Adequate signage and information at all entrances and exits showing what is Corona Virus, how it spreads, what are the symptoms, and standard precautions to be taken; (ii) Awareness sessions for the Contractor’s staff are equally important as for Engineer’s staff to combat COVID-19 at Site. The Engineer will be ensuring that the Contractor is arranging such sessions at Site from time to time to reduce the potential risk of COVID- 19. All the newly inducted and existing staff should be given HSE training by the Engineer and Contractor.

Contractor Contractor will communicate various precautionary measures being taken to Employer and Engineer through letters to control the spread of COVID-19 at Site. Following are the major

Annex 5 157

steps to be taken by the Contractor:

(i) Contractor will convey the instructions and requirements of its superior unit/ management for the prevention and control of COVID-19 epidemic at Site. (ii) Contractor will establish a unit/ system for epidemic prevention and control on the project Site that is responsible for arranging, implementing, publicizing, and supervising the epidemic prevention and control measures. (iii) Contractor will prepare and implement a plan for epidemic prevention and control on the project Site that will include the following measures: ✓ All personnel in temporary camps are required to wear masks; ✓ Contractor personnel in charge of Site to wear masks; ✓ Personnel will be arranged/ delegated to measure and record the temperature of all personnel when entering or leaving the temporary camp; ✓ If any person with fever, cold and other symptoms is found, they will be sent home for isolation and inquired about the development of the disease every day; and ✓ Propagate and implement the epidemic prevention measures for the staff and labour and warn them not to go outside and home as much as possible.

(iv) All meetings should be carried out through video conference. (v) Contractor is not limited to the above precautionary measures, and should also implement and but practice and the following: ✓ Prepare a pamphlet for the awareness of Site staff to combat the COVID-19, which should be placed/posted at strategic points at Site. ✓ Launch awareness campaign to inform all the staff and labour about the coronavirus, to use facemask, hand hygiene, cough etiquette, and avoidance of close contact with animals and consumption of their raw products. ✓ Everyday awareness speech in the camps. ✓ The employees should not be allowed to leave the project area for time off or vacation to their homes. ✓ Provide medical masks and antibacterial liquid hand wash to all personnel. ✓ Prepare and maintain an isolation facility at Site and provide isolated rooms for COVID-19 patients inside the camp. Each room should be equipped with three beds, oxygen cylinder, sanitizers, isolation kit and hand wash. ✓ Thermal scanning is to be carried out continuously in the morning for everybody entering the site for work and at the main gates of the camps. ✓ Record of temperature value of each person should be maintained regularly. The designated personnel for this task should conduct temperature scanning twice daily e.g. in the morning and afternoon. ✓ Disinfectant should be sprayed on a daily basis (morning and afternoon) in every office, rooms and all the area of the camp. ✓ Meetings between Employer, Engineer and Contractor staff should be conducted via video cons and physical interaction should not be allowed.

Recommendations for Control of COVID-19 at Site To Avoid Transmission

The following good practice precautionary measures should be followed by all Site personnel:

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(i) Workers to remain at least two meters apart from each other at all times (social distancing) – i.e. spread out and reduce the number of people working together in one area of the site. (ii) Avoid eating lunch in the form of a group in available mess/canteens at Site. (iii) Avoid in-person meetings if possible. In the case that an in-person meeting is unavoidable, make sure to have it in a well-ventilated area with sufficient space for attendees to distance themselves from one another. For meetings such as toolbox talks, consider breaking them up into smaller group meetings versus one large meeting. (iv) Introduce enhanced cleaning procedures across the Site and touch points e.g. office equipment, plant and machinery controls, taps/toilet/washing facilities, handrails. (v) Stagger start times on site to avoid congestion in entrance areas. (vi) Reduce the number of people on site inductions at any one time and hold them outdoors if possible. (vii) Stop workers moving across various sites (potential for cross contamination). (viii) No outsiders should be at the Project Site. (ix) Contractor, Engineer and Employer personnel are advised to avoid travelling, and in case traveling is unavoidable, prior approval from the management should be essential. In case of travelling, the above-mentioned measures need to be strictly followed by the traveler. (x) Prompt identification and isolation of potentially infectious individuals is a critical first step in protecting workers and other Site staff. An isolated area should be available at Site to immediately isolate persons suspected of having contracted COVID-19, as it is most important to stop its spread at Site. (xi) A Rapid Response Team should be formed and be informed immediately in case of a suspected or confirmed case of COVID-19. (xii) The medical team at Site should separate the suspected person displaying fever, cough or difficulty breathing from other personnel. (xiii) If a person has had close contact with an individual who has confirmed COVID-19, that person will not be allowed to return to the Site until he/she has been symptom free for 14 days. (xiv) All the workplaces at Site should be cleaned and fumigated on daily basis. (xv) Solid soap bas should be replaced with liquid anti-bacterial soap. (xvi) Alcohol-based hand sanitizer should be readily available for all staff. (xvii) Have the cleaners/ maintenance crews regularly clean and disinfect indoor and outdoor surfaces that are touched frequently. (xviii) Fresh medical tests of staff working should be carried out at site; (xix) Dispose of all contaminated waste (gloves, paper, swab handles, etc.) into biohazard waste bags for disposal. (xx) Ensure that panic is not created. In fact, the posters should start with statements such as do not panic and fear the virus but know and prevent. (xxi) Ensure proper ventilation system for all enclosed areas at the Site.

Use of Personal Protective Equipment (PPEs) (i) Necessary PPE should be available at Site all the times and issued to each personnel at Site. (ii) Practice of using masks (surgical or N95) must be ensured by all parties at Site. (iii) Reusable PPE should be thoroughly cleaned after use and not shared between workers. Single use PPE should be disposed of so that it cannot be reused.

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Outside Visitors (i) Strict wearing of visitors’ cards must be enforced for all visitors. (ii) Regular sanitization of hands must be ensured. (iii) All parties should ensure that sick persons should be wearing a surgical or N95 mask. (iv) Complete information of outsiders must be noted down before entrance to Site. (v) Proper screening of all visitors should be carried out before entering the Site. (vi) Refrain from handshakes. Rather than shaking hands, it may be explained to visitors why handshakes can contribute to the risk of spread. (vii) Attempt to maintain a general six (6) foot distance between persons. This will always be challenging to follow, but it should be recommended and attempted. (viii) Refrain from and/or limit touching of workplace surfaces. (ix) In addition to these on-site procedures, it is advised to follow respective organizational instructions related to Site visits.

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ANNEX 6: PHOTOS FROM THE CONSULTATION MEETINGS

Annex 6 161

Annex 6 162

Annex 7 163

ANNEX 7: PHOTOS OF THE SELECTED SITES

VET College “Iberia”, Kutaisi

Annex 7 164

Akaki Tsereteli Kutaisi State University

Annex 7 165

VET College “Prestige”

Annex 7 166

Telavi State University

Annex 7 167

Abasha Public School #1

Annex 7 168

Ramin Dikhaminjia Chkhorotsku Public School #1

Annex 7 169

Tsalenjikha Public School #1

Annex 7 170

Chiatura Public School #1

Annex 7 171

Samtredia Public School #11

Annex 7 172

Ilia Chavchavadze Sachkhere Public School #2

Annex 7 173

Terjola Public School # 2

Annex 7 174

Vani Public School #1

Annex 7 175

Khoni Public School

Annex 7 176

Kharagauli Public School # 2 (Tetratskaro Building)

Annex 7 177

Vale Public School

Annex 7 178

Aspindza Public School

Annex 7 179

Bolnisi Municipality Village Talaveri Public School #1

Annex 7 180

Levan Devdariani Gardabani Public School #1

Annex 7 181

Kareli Public School #1

Annex 7 182

Keda Public School

Annex 7 183

Signaghi Municipality Tsnori Public School #1

Annex 7 184

Simon Skhirtladze Oni Public School

Annex 7 185

Mukhrani Public School, (optimized Building II)

Annex 7 186

Village Duisi Public School